UK borrowing overshoots expectations in February
By Michele Maatouk
Date: Friday 21 Mar 2025
(Sharecast News) - UK borrowing significantly overshot expectations in February, according to data released on Friday by the Office for National Statistics.
The government borrowed £10.7bn in February, up £100m on the same month last year. This was the fourth highest figure on record for that month and well above the Office for Budget Responsibility's forecast of £6.5bn. It was also above economists' forecast of £7bn.
Borrowing is the difference between what the government spends on the public sector and what it gets in income from tax and other receipts.
For the year to February, borrowing came in at £132.2bn, up £14.7bn on the same period a year earlier.
Jessica Barnaby, deputy director for public sector finances at the ONS, said: "At £10.7bn, public sector borrowing in the month of February was virtually unchanged on the same month last year. However, borrowing over the financial year to date was up nearly £15bn on the equivalent period last year."
Chancellor Rachel Reeves is due to deliver her Spring statement next week.
Alex Kerr, UK economist at Capital Economics, said: "Ultimately, today's release will have no influence on how much the Chancellor needs to tighten fiscal policy at next week's fiscal update. Higher gilt yields and the weaker economy have probably wiped out the Chancellor's headroom of £9.9bn.
"And in order to restore that buffer, on top of the £5.0bn of welfare cuts already announced, we think she will cut non-defence departmental spending by around £6.5bn."
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