Table of contents
- Other pages in this release
- Main points
- Borrowing in September 2022
- Borrowing in the financial year to September 2022
- Borrowing in the financial year ending March 2022
- Central government net cash requirement
- Debt
- Revisions
- Changes to public sector finance statistics introduced in September 2022
- Public sector finances data
- Glossary
- Measuring the data
- Strengths and limitations
- Related links
- Cite this statistical bulletin
1. Other pages in this release
Other commentary from the latest public sector finances data can be found on the following pages:
Back to table of contents2. Main points
Public sector net borrowing excluding public sector banks (PSNB ex) was £20.0 billion in September 2022, which was £2.2 billion more than in September 2021 and the second highest September borrowing since monthly records began in 1993, being £8.2 billion lower than in September 2020 at the height of the coronavirus (COVID-19) pandemic.
Central government current (or day-to-day) expenditure was £79.3 billion in September 2022, which was £5.8 billion more than in September 2021; this largely reflected a £2.5 billion increase in debt interest payable, and a £4.4 billion increase in net social benefit payments being partially offset by a £1.4 billion reduction in subsidy payments.
Central government debt interest payable was £7.7 billion in September 2022, which was £2.5 billion more than in September 2021 and the highest September figure since monthly records began in April 1997; the volatility in interest payable is largely because of the effect of Retail Prices Index (RPI) changes on index-linked gilts.
Central government receipts were £71.2 billion in September 2022, which was £7.0 billion more than in September 2021; of this, tax receipts were £52.0 billion, which was £4.5 billion more than in September 2021.
PSNB ex was £72.5 billion in the financial year to September 2022; this was £24.9 billion less than in the same period last year but £35.6 billion more than in the financial year to September 2019, before the coronavirus pandemic.
Central government net cash requirement (excluding UK Asset Resolution Ltd and Network Rail) was £13.7 billion in September 2022, which was £0.9 billion less than in September 2021; this brought the total to £43.1 billion in the financial year to September 2022.
Public sector net debt excluding public sector banks (PSND ex) was £2,450.2 billion at the end of September 2022, or around 98.0% of gross domestic product (GDP), which was an increase of £213.0 billion or 2.5 percentage points of gross domestic product (GDP) compared with September 2021.
Public sector net debt excluding public sector banks and the Bank of England (PSND ex BoE) was £2,128.7 billion at the end of September 2022, or around 85.1% of GDP, which was an increase of £120.8 billion but a reduction of 0.6 percentage points of GDP compared with September 2021.
3. Borrowing in September 2022
In September 2022, initial estimates show that the public sector spent more than it received in taxes and other income. This required it to borrow £20.0 billion, which was £5.2 billion more than the £14.8 billion forecast by the Office for Budget Responsibility (OBR).
Figure 1: The £20.0 billion borrowed in September 2022 was £2.2 billion more than in September 2021 and £11.0 billion more than in pre-coronavirus (COVID-19) September 2019
Public sector net borrowing excluding public sector banks, £ billion, UK, September 2019 to September 2022
Source: Office for National Statistics – Public sector finances
Download this chart Figure 1: The £20.0 billion borrowed in September 2022 was £2.2 billion more than in September 2021 and £11.0 billion more than in pre-coronavirus (COVID-19) September 2019
Image .csv .xls
| September (£ billion) | Change on a year ago | |||
|---|---|---|---|---|
| 2021 | 2022 | £ billion | % | |
| Central Government | 19.4 | 18.3 | -1.1 | -5.6 |
| Local Government | 0.6 | 2.0 | 1.4 | 249.8 |
| Public Corporations | -0.1 | -0.1 | 0.0 | 26.8 |
| Public Sector Pensions | -0.6 | -0.3 | 0.3 | 43.9 |
| Sub-total: Public Sector ex BoE and Banks | 19.2 | 19.9 | 0.7 | 3.4 |
| Bank of England | -1.4 | 0.2 | 1.6 | - |
| Sub-total: Public Sector ex [Note 1] | 17.8 | 20.0 | 2.2 | 12.6 |
| Public Sector Banks | -0.8 | -0.8 | 0.0 | 0.0 |
| Total: Public Sector | 17.0 | 19.2 | 2.2 | 13.1 |
Download this table Table 1: Public sector net borrowing
.xls .csvCentral government forms the largest part of the public sector and the relationship between its receipts and expenditure is the key determinant of public sector current budget deficit and borrowing.
Figure 2: Monthly central government expenditure generally exceeds income
Central government net borrowing, £ billions, UK, January 2019 to September 2022
Source: Office for National Statistics – Public sector finances
Download this chart Figure 2: Monthly central government expenditure generally exceeds income
Image .csv .xlsCentral government receipts
Central government receipts in September 2022 were estimated to have been £71.2 billion, which was £7.0 billion more than in September 2021. Of these receipts, tax revenue increased by £4.5 billion to £52.0 billion.
| September (£ billion) | Change on a year ago | |||
|---|---|---|---|---|
| 2021 | 2022 | £ billion | % | |
| Value Added Tax | 13.6 | 15.1 | 1.4 | 10.5 |
| Fuel Duty | 2.3 | 2.0 | -0.2 | -10.6 |
| Alcohol Duty | 1.2 | 1.1 | -0.1 | -10.1 |
| Tobacco Duty | 0.8 | 0.7 | -0.1 | -10.4 |
| Business Rates | 2.0 | 2.3 | 0.3 | 14.6 |
| Stamp Duty (L&P) [Note 1] | 1.4 | 1.6 | 0.2 | 13.6 |
| Customs Duties | 0.4 | 0.5 | 0.1 | 13.3 |
| Other taxes on production | 2.9 | 3.4 | 0.5 | 17.2 |
| Pay As You Earn Income Tax | 14.7 | 15.9 | 1.2 | 8.2 |
| Self-Assessed Income Tax | 0.7 | 0.6 | -0.1 | -8.2 |
| Corporation Tax | 5.5 | 6.8 | 1.3 | 24.0 |
| Corporation Tax: Of which Energy Profits Levy | 0.0 | 0.7 | 0.7 | - |
| Other Taxes on Income & wealth [Note 2] | 0.0 | 0.1 | 0.1 | - |
| Other Taxes | 2.0 | 1.9 | -0.1 | -4.9 |
| Compulsory social contributions | 13.0 | 15.1 | 2.0 | 15.6 |
| Interest & Dividends receipts | 0.7 | 1.1 | 0.4 | 61.5 |
| Other receipts | 3.0 | 3.0 | 0.0 | 1.6 |
| Total Current Receipts | 64.2 | 71.2 | 7.0 | 10.9 |
Download this table Table 2: Central government current receipts
.xls .csvEnergy profits levy
This month we have included estimates for the Energy Profits Levy (EPL), a new levy on the profits of oil and gas companies, for the first time. For more information, see GOV.UK's Energy Profits Levy Factsheet - 26 May 2022. Classified as a tax on the profits of oil and gas companies operating in the UK and the UK Continental Shelf, EPL receipts are recorded as a sub-component of corporation tax, increasing each of our previously published estimates by £0.7 billion in each month from June 2022 to date on an accrued basis.
Central government expenditure
Central government bodies spent £79.3 billion on current (or day-to-day) expenditure in September 2022, which was £5.8 billion more than in September 2021.
| September (£ billion) | Change on a year ago | |||
|---|---|---|---|---|
| 2021 | 2022 | £ billion | % | |
| Interest payments [Note 1] | 5.1 | 7.7 | 2.5 | 48.7 |
| National Insurance Fund Benefits | 11.1 | 14.3 | 3.2 | 28.5 |
| Social Assistance | 10.0 | 11.0 | 1.0 | 9.9 |
| Other Net social Benefits | 0.3 | 0.4 | 0.1 | 33.3 |
| Procurement [Notes 2 and 3] | 15.7 | 16.2 | 0.5 | 3.2 |
| Pay | 13.9 | 14.3 | 0.4 | 2.7 |
| Transfers to Local Government [Note 4] | 10.2 | 9.4 | -0.7 | -7.3 |
| Contributions to EU [Note 5] | 0.0 | 0.0 | 0.0 | - |
| Current transfers paid abroad - UK payments to EU [Note 6] | 0.8 | 0.8 | 0.0 | -5.1 |
| Current transfers paid abroad - Other | 0.3 | 0.6 | 0.3 | 100.0 |
| Subsidies - CJRS [Note 7] | 0.7 | 0.0 | -0.7 | - |
| Subsidies - SEISS [Note 8] | 0.6 | 0.0 | -0.6 | - |
| Subsidies - Other | 2.6 | 2.5 | -0.1 | -3.8 |
| Other Expenditure | 2.2 | 2.2 | 0.0 | 0.0 |
| Total Current Expenditure | 73.5 | 79.3 | 5.8 | 8.0 |
| Depreciation | 2.6 | 2.8 | 0.1 | 5.0 |
| Net Investment | 7.4 | 7.4 | -0.1 | -0.8 |
| Total Expenditure | 83.6 | 89.5 | 5.9 | 7.1 |
Download this table Table 3: Central government expenditure
.xls .csvInterest payable on central government debt
Since mid-2021, the cost of servicing central government debt has increased considerably. These rising costs do not principally reflect recent increases in the level of government debt, nor is the change in servicing costs driven by large increases in the interest - or coupon - payments by government. Instead the recent high levels of debt interest payable are largely a result of higher inflation, with the interest payable on index-linked gilts rising in line with the Retail Prices Index (RPI).
In September 2022, the interest payable on central government debt was £7.7 billion, of which £4.7 billion reflected the impact of the RPI.
Figure 3: The interest payable on index-linked gilts rises and falls with Retail Prices Index (RPI) adding volatility to central government debt interest costs
Central government debt interest payable, £ billions, UK, September 2020 to September 2022
Source: Office for National Statistics – Public sector finances
Download this chart Figure 3: The interest payable on index-linked gilts rises and falls with Retail Prices Index (RPI) adding volatility to central government debt interest costs
Image .csv .xlsThe inflation-linked portion of interest payable on most index-linked gilts is calculated using a three-month lagged RPI. In September 2022, we reference the RPI movement between June and July 2022. RPI increases in the most recent months will be reflected in our interest estimates for future months.
Figure 4: The Office for Budget Responsibility (OBR) estimates that the debt interest payable on central government’s outstanding debt will be £87.2 billion for the current financial year
Forecast and estimated debt payables, £ billions, UK, April 2022 to March 2023
Source: Office for National Statistics – Public sector finances and Office for Budget Responsibility (OBR)
Notes:
- This chart uses forecast data published in the Economic and fiscal outlook – March 2022 and the subsequent monthly profiles published on 12 May 2022.
Download this chart Figure 4: The Office for Budget Responsibility (OBR) estimates that the debt interest payable on central government’s outstanding debt will be £87.2 billion for the current financial year
Image .csv .xlsWhile any RPI uplift will affect accrued expenditure (as used in the calculation of borrowing), it will not be wholly and immediately reflected in the central government net cash requirement. These movements are reflected in the government's liabilities, which will be realised as the existing stock of index-linked gilts is redeemed.
On 18 July 2022, we published a methodology article explaining The calculation of interest payable on government gilts.
Net social benefits
In September 2022, net social benefit payments were £25.7 billion, £4.4 billion more than in September 2021. This increase was largely because of an increase in cost-of-living payments, chiefly enhanced Winter Fuel Payments that are recorded each September to be paid out during November and December.
Subsidies
In September 2022, subsidies paid by central government were £2.5 billion, £1.4 billion less than in September 2021. This reduction is largely because of the ending of payments related to the job support schemes paid during the coronavirus pandemic period.
Back to table of contents4. Borrowing in the financial year to September 2022
Public sector net borrowing excluding public sector banks (PSNB ex) was £72.5 billion in the financial year (FY) to September 2022, £24.9 billion less than in the same period last year.
Figure 5: Borrowing in the financial year-to-September 2022 was £0.4 billion less than the £72.9 billion forecast by the Office for Budget Responsibility (OBR)
Public sector net borrowing excluding public sector banks, £ billions, UK, financial year ending (FYE) 1994 to FYE 2023
Source: The Office for Budget Responsibility and the Office for National Statistics – Public sector finances
Notes:
- This chart uses forecast data published in the Economic and fiscal outlook – March 2022 and the subsequent monthly profiles published on 12 May 2022.
Download this chart Figure 5: Borrowing in the financial year-to-September 2022 was £0.4 billion less than the £72.9 billion forecast by the Office for Budget Responsibility (OBR)
Image .csv .xls
| Financial year-to-date (£ billion) [Note 2] | Change on a year ago | |||
|---|---|---|---|---|
| 2021/22 | 2022/23 | £ billion | % | |
| Central Government | 117.1 | 73.5 | -43.6 | -37.2 |
| Local Government | -9.0 | 0.0 | 9.1 | - |
| Public Corporations | -0.3 | -0.5 | -0.2 | -51.8 |
| Public Sector Pensions | -3.6 | -2.0 | 1.6 | 44.0 |
| Sub-total: Public Sector ex BoE and Banks | 104.2 | 71.0 | -33.1 | -31.8 |
| Bank of England | -6.8 | 1.5 | 8.2 | - |
| Sub-total: Public Sector ex [Note 1] | 97.4 | 72.5 | -24.9 | -25.6 |
| Public Sector Banks | -4.6 | -4.6 | 0.0 | 0.1 |
| Total: Public Sector | 92.8 | 67.9 | -24.9 | -26.8 |
Download this table Table 4: Public sector net borrowing
.xls .csvPublic sector current budget deficit
The public sector current budget deficit is the gap between current expenditure and current receipts on an accrued basis, having taken account of depreciation. The current budget deficit can be thought of as borrowing to fund day-to-day spending, as it excludes the capital expenditure (or net investment) present in the wider net borrowing measure.
| Financial year-to-date (£ billion) [Note 2] | Change on a year ago | |||
|---|---|---|---|---|
| 2021/22 | 2022/23 | £ billion | % | |
| Central Government | 87.9 | 46.6 | -41.3 | -47.0 |
| Local Government | -3.3 | 5.6 | 8.9 | - |
| Public Corporations | -1.2 | -0.9 | 0.4 | 28.3 |
| Public Sector Pensions | -1.7 | -2.5 | -0.9 | -52.1 |
| Sub-total: Public Sector ex BoE and Banks | 81.7 | 48.8 | -32.9 | -40.3 |
| Bank of England | -6.8 | 1.5 | 8.2 | - |
| Sub-total: Public Sector ex [Note 1] | 74.9 | 50.2 | -24.7 | -33.0 |
| Public Sector Banks | -4.4 | -4.4 | 0.0 | 0.2 |
| Total: Public Sector | 70.5 | 45.9 | -24.7 | -35.0 |
Download this table Table 5: Public sector current budget deficit
.xls .csvCentral government receipts
Central government receipts in the financial year (FY) to September 2022 were £436.4 billion, which was £53.1 billion more than a year earlier. Of these, tax receipts were £319.8 billion, which was £35.8 billion more than in the FY to September 2021.
| Financial year-to-date (£ billion) [Note 2] | Change on a year ago | |||
|---|---|---|---|---|
| 2021/22 | 2022/23 | £ billion | % | |
| Value Added Tax | 78.6 | 89.0 | 10.4 | 13.3 |
| Fuel Duty | 13.4 | 12.7 | -0.6 | -4.7 |
| Alcohol Duty | 6.8 | 6.3 | -0.5 | -6.9 |
| Tobacco Duty | 4.9 | 4.9 | 0.0 | -0.6 |
| Business Rates | 11.3 | 14.4 | 3.1 | 27.5 |
| Stamp Duty (L&P) [Note 1] | 7.0 | 9.3 | 2.3 | 33.0 |
| Customs Duties | 2.2 | 2.7 | 0.4 | 19.9 |
| Other taxes on production | 17.7 | 21.9 | 4.2 | 23.7 |
| Pay As You Earn Income Tax | 88.7 | 97.8 | 9.2 | 10.4 |
| Self-Assessed Income Tax | 12.8 | 13.3 | 0.5 | 3.5 |
| Corporation Tax | 31.2 | 37.8 | 6.6 | 21.2 |
| Corporation Tax: Of which Energy Profits Levy | 0.0 | 2.8 | 2.8 | - |
| Other Taxes on Income & wealth [Note 3] | -1.5 | -1.5 | 0.0 | 0.0 |
| Other Taxes | 10.8 | 11.2 | 0.3 | 3.1 |
| Compulsory social contributions | 75.8 | 88.6 | 12.9 | 17.0 |
| Interest & Dividends receipts | 5.7 | 9.9 | 4.2 | 73.8 |
| Other receipts | 18.0 | 18.2 | 0.2 | 1.1 |
| Total Current Receipts | 383.4 | 436.4 | 53.1 | 13.8 |
Download this table Table 6: Central government current receipts
.xls .csvCentral government expenditure
Central government bodies spent £466.5 billion on current (or day-to-day) expenditure in the FY to September 2022, which was £11.1 billion more than in the same six-month period last year.
In April 2022, we recorded the Council Tax rebate in England as a payable tax credit from central government to households. This payment was recorded within the Other Expenditure category in Table 7, and the additional expenditure increased central government and subsequently public sector net borrowing by £3.0 billion in April 2022.
| Financial year-to-date (£ billion) [Note 9] | Change on a year ago | |||
|---|---|---|---|---|
| 2021/22 | 2022/23 | £ billion | % | |
| Interest payments [Note 1] | 34.9 | 57.1 | 22.2 | 63.8 |
| National Insurance Fund Benefits | 58.1 | 63.6 | 5.5 | 9.5 |
| Social Assistance | 60.7 | 64.4 | 3.7 | 6.1 |
| Other Net social Benefits | 1.2 | 2.1 | 0.9 | 75.0 |
| Procurement [Notes 2 and 3] | 94.2 | 93.4 | -0.8 | -0.8 |
| Pay | 81.9 | 85.0 | 3.1 | 3.8 |
| Transfers to Local Government [Note 4] | 71.9 | 63.9 | -8.0 | -11.1 |
| Contributions to EU [Note 5] | 0.0 | 0.0 | 0.0 | - |
| Current transfers paid abroad - UK payments to EU [Note 6] | 3.2 | 4.7 | 1.5 | 45.3 |
| Current transfers paid abroad - Other | 2.4 | 2.6 | 0.2 | 8.3 |
| Subsidies - CJRS [Note 7] | 8.5 | 0.0 | -8.5 | -100.0 |
| Subsidies - SEISS [Note 8] | 8.2 | 0.0 | -8.2 | -100.0 |
| Subsidies - Other | 16.7 | 13.1 | -3.6 | -21.6 |
| Other Expenditure | 13.6 | 16.6 | 3.0 | 22.1 |
| Total Current Expenditure | 455.5 | 466.5 | 11.1 | 2.4 |
| Depreciation | 15.8 | 16.5 | 0.7 | 4.5 |
| Net Investment | 29.3 | 26.9 | -2.3 | -8.0 |
| Total Expenditure | 500.5 | 509.9 | 9.4 | 1.9 |
Download this table Table 7: Central government expenditure
.xls .csv5. Borrowing in the financial year ending March 2022
The public sector borrowed £133.3 billion in the financial year ending (FYE) March 2022. This was £5.5 billion more than the £127.8 billion forecast by the Office for Budget Responsibility (OBR) in its Economic and fiscal outlook - March 2022. However, this was less than half of the £312.6 billion borrowed in the FYE March 2021.
| Financial year (£ billion) [Note 2] | Change on a year ago | |||
|---|---|---|---|---|
| 2020/21 | 2021/22 | £ billion | % | |
| Central Government | 322.0 | 154.0 | -167.9 | -52.2 |
| Local Government | -2.4 | -3.1 | -0.6 | -25.9 |
| Public Corporations | -0.7 | -1.4 | -0.7 | -102.3 |
| Public Sector Pensions | -1.1 | -7.3 | -6.2 | - |
| Sub-total: Public Sector ex BoE and Banks | 317.8 | 142.3 | -175.5 | -55.2 |
| Bank of England | -5.1 | -9.0 | -3.9 | -76.0 |
| Sub-total: Public Sector ex [Note 1] | 312.6 | 133.3 | -179.4 | -57.4 |
| Public Sector Banks | -9.5 | -9.2 | 0.3 | 3.0 |
| Total: Public Sector | 303.2 | 124.1 | -179.1 | -59.1 |
Download this table Table 8: Public sector net borrowing
.xls .csvThe coronavirus (COVID-19) pandemic has had a substantial impact on the economy as well as public sector borrowing. Expressed as a ratio of UK gross domestic product (GDP), borrowing in the FYE March 2021 was 15.0%, which was the highest for 75 years. Our latest estimates indicate that this ratio fell by 9.3 percentage points to 5.7% over the 12 months to March 2022.
Figure 6: Borrowing in the financial year ending (FYE) March 2022 was around a third of that in the FYE March 2021 when expressed as a ratio of gross domestic product (GDP)
Public sector net borrowing excluding public sector banks, percentage GDP, UK, FYE 1901 to FYE 2022
Source: Office for Budget Responsibility and Office for National Statistics – Public sector finances
Notes:
- This chart uses historical data published in the Public finances databank 2022-23.
Download this chart Figure 6: Borrowing in the financial year ending (FYE) March 2022 was around a third of that in the FYE March 2021 when expressed as a ratio of gross domestic product (GDP)
Image .csv .xls6. Central government net cash requirement
The central government net cash requirement (CGNCR), excluding UK Asset Resolution Ltd and Network Rail, is the amount of cash needed immediately for the UK government to meet its obligations. To obtain cash, the UK government sells financial instruments, gilts or Treasury Bills.
The amount of cash required will be affected by changes in the timing of payments to and from central government, but it does not depend on forecast tax receipts in the same way as our accrued (or national accounts-based) measures of borrowing.
The CGNCR consequently contains the timeliest information and is less susceptible to revision than other statistics in this release.
However, as for any cash measure, the CGNCR does not reflect the overall amount for which the government is liable or the point at which any liability is incurred – it only reflects when cash is received and spent.
| September (billion) | Change on a year ago | |||
|---|---|---|---|---|
| 2021 | 2022 | £ billion | % | |
| Cash Receipts | ||||
| HMRC Receipts: Total paid over [Note 1] | 52.1 | 57.5 | 5.4 | 10.5 |
| HMRC Receipts: Of which Income tax [Note 2] | 15.2 | 16.2 | 1.0 | 6.5 |
| HMRC Receipts: Of which NICs [Note 3] | 12.6 | 13.8 | 1.2 | 9.8 |
| HMRC Receipts: Of which VAT [Note 4] | 8.3 | 8.8 | 0.5 | 5.9 |
| HMRC Receipts: Of which Corporation tax [Note 5] | 10.3 | 11.0 | 0.8 | 7.4 |
| Interest & Dividends Receipts | 0.5 | 0.7 | 0.2 | 37.6 |
| Other Receipts [Note 6] | 4.2 | 2.7 | -1.5 | -35.7 |
| Total Cash Receipts | 56.8 | 60.9 | 4.1 | 7.3 |
| Cash Outlays | ||||
| Interest Payments | 5.5 | 4.3 | -1.2 | -22.5 |
| Net Acquisition of Company Securities [Note 7] | 0.0 | 0.0 | 0.0 | - |
| Net Department Outlays: Total [Note 8] | 66.1 | 70.1 | 4.0 | 6.1 |
| Net Department Outlays: CJRS [Note 9] | 0.8 | 0.0 | -0.8 | -100.0 |
| Net Department Outlays: SEISS [Note 10] | 0.6 | 0.0 | -0.6 | -100.0 |
| Total Cash Outlays | 71.6 | 74.4 | 2.8 | 3.9 |
| Cash Balance | ||||
| Own account Net Cash Requirement ex [Note 11] | 14.8 | 13.5 | -1.3 | -9.0 |
| NRAM and B&B | 0.0 | 0.0 | 0.0 | - |
| Network Rail | 0.0 | 0.0 | 0.0 | - |
| Own account Net Cash Requirement [Note 12] | 14.8 | 13.4 | -1.3 | -9.0 |
Download this table Table 9: Central government net cash requirement on own account
.xls .csv
| Financial year-to-date (£ billion) [Note 1] | Change on a year ago | |||
|---|---|---|---|---|
| 2021/22 | 2022/23 | £ billion | % | |
| Cash Receipts | ||||
| HMRC Receipts: Total paid over | 317.7 | 357.7 | 40.0 | 12.6 |
| HMRC Receipts: Of which Income tax | 103.9 | 115.8 | 12.0 | 11.5 |
| HMRC Receipts: Of which NICs | 76.5 | 88.8 | 12.2 | 16.0 |
| HMRC Receipts: Of which VAT | 75.3 | 76.2 | 0.9 | 1.2 |
| HMRC Receipts: Of which Corporation tax | 29.7 | 35.3 | 5.6 | 18.7 |
| Interest & Dividends Receipts | 4.8 | 7.5 | 2.7 | 56.6 |
| Other Receipts | 19.0 | 22.8 | 3.8 | 20.2 |
| Total Cash Receipts | 341.5 | 388.0 | 46.5 | 13.6 |
| Cash Outlays | ||||
| Interest Payments | 18.0 | 16.9 | -1.1 | -5.9 |
| Net Acquisition of Company Securities | -1.1 | 0.0 | 1.1 | - |
| Net Department Outlays: Total | 422.0 | 412.0 | -10.1 | -2.4 |
| Net Department Outlays: CJRS | 10.4 | -0.1 | -10.5 | - |
| Net Department Outlays: SEISS | 8.2 | 0.0 | -8.2 | -100.0 |
| Total Cash Outlays | 438.9 | 428.9 | -10.0 | -2.3 |
| Cash Balance | ||||
| Own account Net Cash Requirement ex | 97.4 | 40.9 | -56.6 | -58.0 |
| NRAM and B&B | 0.0 | 0.0 | 0.0 | - |
| Network Rail | -0.2 | -0.2 | 0.0 | - |
| Own account Net Cash Requirement | 97.3 | 40.7 | -56.6 | -58.1 |
Download this table Table 10: Central government net cash requirement on own account
.xls .csv7. Debt
Public sector net debt excluding public sector banks (PSND ex) was £2,450.2 billion at the end of September 2022, which was an increase of £213.0 billion compared with September last year.
The extra funding required by government over the course of the coronavirus (COVID-19) pandemic, combined with reduced cash receipts and a fall in gross domestic product (GDP), have all helped to push public sector net debt at the end of September 2022 to 98.0% of GDP.
Figure 7: Debt has reached levels last seen in the early 1960s
Public sector net debt excluding public sector banks, percentage of GDP, UK, financial year ending (FYE) 1921 to September 2022
Source: Office for Budget Responsibility and Office for National Statistics – Public sector finances
Notes:
- This chart uses historical data published in the Public finances databank 2022-23.
Download this chart Figure 7: Debt has reached levels last seen in the early 1960s
Image .csv .xlsDebt is largely made up of gilts (or bonds) issued to investors by central government. Of the £2,056.4 billion gilts in circulation at the end of September 2022:
£1,506.8 billion are conventional gilts that pay a fixed interest rate
£549.6 billion are index-linked gilts that pay an interest rate pegged to the Retail Prices Index (RPI) and are recorded at their redemption value
These gilts are auctioned by the Debt Management Office (DMO) in accordance with its financing remit, on behalf of central government.
The Bank of England's contribution to debt
The Bank of England's (BoE) contribution to public sector net debt is largely a result of its quantitative easing activities. These include both the gilt-purchasing activities and corporate bond holdings of the Asset Purchase Facility Fund (APF) and loans made under Term Funding Schemes (TFS).
Our measure of public sector net debt excluding the public sector banks and the Bank of England (PSND ex BoE) removes the debt impact of these schemes along with the other transactions relating to the normal operations of the BoE. Standing at £2,128.7 billion at the end of September 2022 (or around 85.1% of GDP), PSND ex BoE was £321.5 billion (or 12.9 percentage points of GDP) less than PSND ex.
Quantitative easing
On 28 September 2022, the BoE announced an intervention in the market in order to maintain financial stability through the temporary purchase of long-dated UK government bonds (gilts). As these gilt market operations are very similar to those used by the BoE in its quantitative easing, we have recorded these additional temporary gilt holdings within our APF estimates.
The APF's gilt holdings currently stand at £730.7 billion (at redemption value), a reduction of £1.0 billion compared with August 2022. This change was a result of a £5.8 billion redemption of gilts held by the APF that was partially offset by the purchase of £4.9 billion of gilts under its temporary holdings of long-dated UK government bonds scheme. For more information on their market operations, see the Bank of England's Results and usage data.
It is important to understand that this £730.7 billion (conventional) gilt holding is not recorded directly as a component of public sector net debt. Instead, in September 2022, we record the £110.8 billion difference between the £841.5 billion of reserves created to purchase gilts (at market value) and the £730.7 billion redemption value of the gilts purchased.
Table PSA9A in our Public sector finances tables 1 to 10: Appendix A presents the impact of both APF and TFS as a part of the BoE's contribution to public sector net debt.
Figure 8: The Bank of England contributed £321.5 billion to public sector net debt at the end of September 2022
Public sector net debt excluding public sector banks, UK, March 1994 to the end of September 2022
Source: Office for National Statistics – Public sector finances
Notes:
- Includes Asset Purchase Facility (APF) which includes the Term Funding Scheme (TFS) and TFS incentives for small and medium-sized enterprises (TFSME).
- Public sector net debt excluding public sector banks (PSND ex) is the combination of PSND ex Bank of England (BoE) plus the BoE’s contribution to PSND ex.
- Public sector net debt excluding public sector banks (PSND ex) shown at the end of each financial year (March), unless otherwise stated.
Download this chart Figure 8: The Bank of England contributed £321.5 billion to public sector net debt at the end of September 2022
Image .csv .xlsPublic sector net financial liabilities
Public sector net financial liabilities excluding public sector banks (PSNFL ex) provides a more comprehensive measure of the public sector balance sheet. It captures a wider range of financial assets and liabilities than recorded in PSND ex, such as the assets held under the TFS, which fall outside the boundary of PSND ex.
PSNFL ex was £2,126.5 billion at the end of September 2022 (or around 85.0% of GDP), which was £323.7 billion (or 13.0 percentage points of GDP) less than PSND ex.
Table PSNFL 3, published as a part of our Public sector finances tables 1 to 10: Appendix A, provides a reconciliation between the latest measures of PSND ex and PSNFL ex.
Back to table of contents8. Revisions
The data for the latest months of every release contain a degree of forecasts. Subsequently, these are replaced by improved forecasts, as further data are made available, and finally by outturn data.
| £ billion | ||||||
|---|---|---|---|---|---|---|
| Financial year-to-August [Note 2] | Financial year ending March 2022 [Note 3] | |||||
| Previous | Latest | Change | Previous | Latest | Change | |
| Central Government | 60.5 | 55.2 | -5.3 | 154.4 | 154.0 | -0.4 |
| Local Government | -1.5 | -2.0 | -0.4 | -3.1 | -3.1 | 0.0 |
| Public Corporations | -0.4 | -0.4 | 0.0 | -1.4 | -1.4 | 0.0 |
| Public Sector Pensions | -1.7 | -1.7 | 0.0 | -7.3 | -7.3 | 0.0 |
| Sub-total: Public Sector ex BoE and Banks | 56.9 | 51.2 | -5.8 | 142.7 | 142.3 | -0.4 |
| Bank of England | 1.3 | 1.3 | 0.0 | -9.0 | -9.0 | 0.0 |
| Sub-total: Public Sector ex [Note 1] | 58.2 | 52.5 | -5.8 | 133.7 | 133.3 | -0.4 |
| Public Sector Banks | -3.8 | -3.8 | 0.0 | -9.2 | -9.2 | 0.0 |
| Total: Public Sector | 54.4 | 48.6 | -5.8 | 124.5 | 124.1 | -0.4 |
Download this table Table 11: Revisions to public sector net borrowing
.xls .csvMethodology improvements
In September 2022, we introduced a simpler accruals method for the Climate Change Levy on a national accounts (accrued) basis, covering financial year ending (FYE) March 2021 and the financial year to July 2022, with minimal impact on public sector net borrowing.
This month, we have extended this change to cover the FYE March 2013 to March 2020. As a result, we have increased public sector net borrowing by around £0.2 billion across the whole eight-year period. The effect was heavily concentrated in the FYE March 2020, where a reduction of accrued Climate Change Levy receipts has increased net borrowing by £0.1 billion, largely because of the resolution of data quality issues associated with the impact of coronavirus (COVID-19).
There was no change to the underlying cash data as a result of this work.
Revisions to net borrowing (PSNB ex) in the financial year-to-August 2022
Since our last public sector finances publication on 21 September 2022, we have reduced our estimate of borrowing in the financial year-to-August 2022 by £5.8 billion.
This change was largely a result of an increase of £3.9 billion to our previous estimation of corporation tax receipts. Of this increase, £2.1 billion was the result of the inclusion of the Energy Profits Levy for the first time and £1.8 billion was because of higher than anticipated September (quarterly) cash receipts from larger businesses.
Revisions to net borrowing (PSNB ex) in the FYE March 2022
Since our last public sector finances publication on 21 September 2022, we have reduced our estimate of public sector borrowing in the FYE March 2022 by £0.4 billion. This is again because of higher than anticipated September 2022 (quarterly) cash receipts from larger businesses increasing our previous estimates of corporation tax.
Tables 12 and 13 show the revisions to central government receipts and expenditure in the financial year-to-August 2022 and FYE March 2022 since our last publication.
| £ billion | ||||||
|---|---|---|---|---|---|---|
| Financial year-to-August [Note 3] | Financial year ending March 2022 [Note 4] | |||||
| Previous | Latest | Change | Previous | Latest | Change | |
| Value Added Tax | 73.1 | 74.0 | 0.9 | 165.0 | 165.0 | 0.0 |
| Fuel Duty | 10.7 | 10.7 | 0.0 | 25.9 | 25.9 | 0.0 |
| Alcohol Duty | 5.3 | 5.2 | 0.0 | 13.2 | 13.2 | 0.0 |
| Tobacco Duty | 4.1 | 4.2 | 0.1 | 10.2 | 10.2 | 0.0 |
| Business Rates | 12.2 | 12.2 | 0.0 | 22.4 | 22.4 | 0.0 |
| Stamp Duty (L&P) [Note 1] | 7.8 | 7.8 | 0.0 | 15.4 | 15.4 | 0.0 |
| Customs Duties | 2.1 | 2.2 | 0.0 | 4.9 | 4.9 | 0.0 |
| Other Taxes on Production | 18.2 | 18.3 | 0.1 | 36.6 | 36.7 | 0.1 |
| Pay As You Earn Income Tax | 81.8 | 81.9 | 0.1 | 192.6 | 192.6 | 0.0 |
| Self-Assessed Income Tax | 12.6 | 12.6 | 0.0 | 37.0 | 37.0 | 0.0 |
| Corporation Tax | 27.1 | 31.0 | 3.9 | 68.0 | 68.4 | 0.4 |
| Corporation Tax: Of which Energy Profits Levy | - | 2.1 | 2.1 | - | - | - |
| Other Taxes on Income & wealth [Note 2] | -1.5 | -1.5 | 0.0 | 10.9 | 10.9 | 0.0 |
| Other Taxes | 9.2 | 9.2 | 0.0 | 21.2 | 21.2 | 0.0 |
| Compulsory social contributions | 73.2 | 73.6 | 0.4 | 160.8 | 160.9 | 0.0 |
| Interest & Dividends receipts | 8.6 | 8.7 | 0.1 | 14.8 | 14.8 | 0.0 |
| Other receipts | 15.1 | 15.1 | 0.0 | 36.6 | 36.6 | 0.0 |
| Total Current Receipts | 359.7 | 365.2 | 5.5 | 835.6 | 836.0 | 0.4 |
Download this table Table 12: Revisions to central government current receipts
.xls .csv
| £ billion | ||||||
|---|---|---|---|---|---|---|
| Financial year-to-August [Note 9] | Financial year ending March 2022 [Note 10] | |||||
| Previous | Latest | Change | Previous | Latest | Change | |
| Interest payments [Note 1] | 49.0 | 49.4 | 0.4 | 72.5 | 72.5 | 0.0 |
| National Insurance Fund Benefits | 49.3 | 49.3 | 0.0 | 114.5 | 114.5 | 0.0 |
| Social Assistance | 53.5 | 53.4 | -0.1 | 119.6 | 119.6 | 0.0 |
| Other Net social Benefits | 1.7 | 1.7 | 0.0 | 1.0 | 1.0 | 0.0 |
| Procurement [Notes 2 and 3] | 77.9 | 77.2 | -0.7 | 198.4 | 198.4 | 0.0 |
| Pay | 70.7 | 70.7 | 0.0 | 166.1 | 166.1 | 0.0 |
| Transfers to Local Government [Note 4] | 54.0 | 54.5 | 0.5 | 132.6 | 132.6 | 0.0 |
| Contributions to EU [Note 5] | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Current transfers paid abroad - UK payments to EU [Note 6] | 3.9 | 3.9 | 0.0 | 8.4 | 8.4 | 0.0 |
| Current transfers paid abroad - Other | 2.0 | 2.0 | 0.0 | 5.5 | 5.5 | 0.0 |
| Subsidies - CJRS [Note 7] | 0.0 | 0.0 | 0.0 | 8.5 | 8.5 | 0.0 |
| Subsidies - SEISS [Note 8] | 0.0 | 0.0 | 0.0 | 8.3 | 8.3 | 0.0 |
| Subsidies - Other | 10.4 | 10.6 | 0.2 | 31.6 | 31.6 | 0.0 |
| Other Expenditure | 14.2 | 14.5 | 0.3 | 27.0 | 27.0 | 0.0 |
| Total Current Expenditure | 386.6 | 387.2 | 0.6 | 894.0 | 894.0 | 0.0 |
| Depreciation | 13.7 | 13.7 | 0.0 | 31.9 | 31.9 | 0.0 |
| Net Investment | 20.0 | 19.6 | -0.4 | 64.1 | 64.1 | 0.0 |
| Total Expenditure | 420.3 | 420.5 | 0.2 | 990.0 | 990.0 | 0.0 |
Download this table Table 13: Revisions to central government expenditure
.xls .csvRevisions to public sector net debt excluding public sector banks (PSND ex)
Our estimate of debt at the end of August 2022 remains largely unchanged since our previous Public sector finances, UK bulletin on 21 September 2022, being reduced by £0.2 billion largely because of updated cash data held by the Asset Purchase Facility Fund.
Revisions to gross domestic product (GDP)
This month, we updated our estimates of GDP used in our public sector net debt ratio to reflect the GDP quarterly national accounts, UK published by the Office for National Statistics (ONS) on 30 September 2022.
Largely as a result of these new data, we have increased our estimate of the level of public sector net debt excluding public sector banks (PSND ex) at the end of March 2022 expressed as a ratio of GDP by 1.0 percentage points. Similarly, we have increased our estimate of public sector net borrowing (excluding public sector banks) in the FYE March 2022 by 0.1 percentage points.
The revisions to our debt aggregates are presented in our Public sector finances tables 1 to 10: Appendix A.
Back to table of contents9. Changes to public sector finance statistics introduced in September 2022
In accordance with our transparency strategy and to provide predictability to users, where possible, we aim to package together methodological changes at a single point in the year.
Our Recent and upcoming changes to public sector finance statistics: August 2022 article, explains the changes introduced in September 2022 in some detail. These included improvements in the recording of:
public corporations' data
central government leases
national non-domestic rates
These methodology changes were accompanied by our regular annual data updates, including improvements to our previously published capital consumption, public sector pensions, Pool Reinsurance (Pool Re), and student loans data.
Estimates of how our developments have affected the fiscal aggregates are presented in Changes to public sector finance statistics: Appendix L.
Back to table of contents10. Public sector finances data
Public sector finances tables 1 to 10: Appendix A
Dataset | Released 21 October 2022
The data underlying the public sector finances statistical bulletin are presented in the tables PSA 1 to 10.
Large impacts on public sector fiscal measures excluding banking groups: Appendix B
Dataset | Released 21 October 2022
Large events that affect current public sector net borrowing excluding public sector banks (PSNB ex), and public sector net debt excluding public sector banks (PSND ex) from the period May 2000 onwards. Impacts are shown for the components of public sector net borrowing, net cash requirement and net debt.
Public sector finances revisions analysis on main fiscal aggregates: Appendix C
Dataset | Released 21 October 2022
Revisions analysis for central government receipts, expenditure, net borrowing and net cash requirement statistics for the UK over the last five years.
Public sector current receipts: Appendix D
Dataset | Released 21 October 2022
A breakdown of UK public sector income by latest month, financial year-to-date and full financial year, with comparisons with the same period in the previous financial year.
International Monetary Fund's Government Finance Statistics framework in the public sector finances: Appendix E
Dataset | Released 21 October 2022
Presents the balance sheet, statement of operations and statement of other economic flows for the public sector, compliant with the Government Finance Statistics Manual 2014: GFSM 2014 presentation.
Revisions to the first reported estimate of public sector net borrowing: Appendix F
Dataset | Released 21 October 2022
Summarises revisions to the first estimate of UK public sector borrowing (excluding public sector banks) by sub-sector. Revisions are shown at 6 and 12 months after year end.
Changes to public sector finance statistics: Appendix L
Dataset | Released 21 October 2022
Presents the impact of the methodology and data changes introduced in September 2022 on our headline public sector measures.
11. Glossary
Public sector
In the UK, the public sector consists of six sub-sectors: central government, local government, public non-financial corporations, public sector (funded) pensions, the Bank of England (BoE) and public financial corporations (or public sector banks).
Unless otherwise stated, the figures quoted in this bulletin exclude public sector banks, currently only the NatWest Group, formerly the Royal Bank of Scotland (RBS) Group.
Public sector current expenditure
Current expenditure measures reflect the cost of the public sector's day-to-day activities. For example, central government's provision of services and grants, payment of social benefits and the payment of the interest on its outstanding debt.
Public sector current budget deficit
Public sector current budget deficit is the gap between current expenditure and current receipts on an accrued basis, having taken account of depreciation. The current budget is in surplus when receipts are greater than expenditure.
Public sector net investment
Public sector net investment is the sum of all capital spending, mainly net acquisitions of capital assets and capital grants, less the depreciation of the stock of capital assets.
Public sector net borrowing
Public sector net borrowing excluding public sector banks (PSNB ex) measures the gap between revenue raised (current receipts) and total spending (current expenditure plus net investment). PSNB ex is often referred to by commentators as "the deficit".
Public sector net cash requirement
The public sector net cash requirement (PSNCR) represents the cash needed to be raised from the financial markets over a period of time to finance its activities. The amount of cash required will be affected by changes in the timing of payments to and from the public sector rather than when these liabilities were incurred.
However, it does not depend on forecast tax receipts in the same way as our accrued (or national accounts) based measures of borrowing.
PSNCR may be similar to borrowing for the same period and close, but not identical, to the changes in the level of net debt between two points in time.
Public sector net debt
Public sector net debt excluding public sector banks (PSND ex) represents the amount of money the public sector owes to private sector organisations (including overseas institutions) and is often referred to by commentators as "the national debt".
Back to table of contents12. Measuring the data
Comparing our data with official forecasts
The independent Office for Budget Responsibility (OBR) is responsible for the production of official forecasts for the government. These forecasts are usually produced twice a year, in spring and autumn.
| £ billion unless otherwise stated | ||||
|---|---|---|---|---|
| Provisional estimate September 2022 | OBR forecast [Note 1] September 2022 | Difference | OBR forecast [Note 1] FYE March 2023 | |
| Net Borrowing | 20.0 | 14.8 | 5.2 | 99.1 |
| Net Debt | 2,450.2 | 2,405.5 | 44.7 | 2,453.4 |
| Net Debt % of GDP | 98.0 | 95.7 | 2.3 | 95.5 |
Download this table Table 14: Latest public sector finances estimates compared with official Office for Budget Responsibility forecasts for the financial year ending (FYE) March 2023, UK
.xls .csv
| £ billion unless otherwise stated | |||
|---|---|---|---|
| Provisional estimate FYE March 2022 | OBR forecast [Note 1] FYE March 2022 | Difference | |
| Net Borrowing | 133.3 | 127.8 | 5.5 |
| Current budget deficit | 78.2 | 89.5 | -11.3 |
| Net Debt | 2,372.6 | 2,329.7 | 42.9 |
| Net Debt % of GDP | 97.8 | 95.6 | 2.2 |
| Net Debt ex BoE [Note 2] | 2,054.1 | 2,010.9 | 43.2 |
| Net Debt ex BoE [Note 2] % of GDP | 84.7 | 82.5 | 2.2 |
Download this table Table 15: Latest public sector finances estimates compared with official Office for Budget Responsibility forecasts for the financial year ending (FYE) March 2022, UK
.xls .csvOn 10 October 2022, the Chancellor commissioned the OBR's autumn forecast for 31 October 2022, with accompanying monthly profiles likely to follow in November 2022. Following the publication of these data, we will update our forecast based estimates and presentations at the earliest opportunity.
Energy policy announcements
In 2022, the UK government has announced several plans to manage the cost of energy for households and business across the UK. These schemes are discussed in our Recent and upcoming changes to public sector finance statistics: September 2022 article.
Energy Bills Support Scheme
The Energy Bills Support Scheme (EBSS) is a government scheme giving households in Great Britain (with a domestic electricity contract) £400 towards the cost of their energy bills.
On 31 August 2022, the Office for National Statistics (ONS) announced that the EBSS has been classified as a current transfer payment from government to households.
This additional central government expenditure will increase public sector net borrowing over a six-month period between October 2022 and March 2023.
Energy Price Guarantee schemes
In September 2022, the UK government announced a number of new plans to help manage the cost of energy prices. These include the Energy Price Guarantee (EPG) for households and the Energy Bill Relief Scheme (EBRS) for businesses across the UK.
As announced in the classifications Forward work plan published on 30 September 2022, and the publication of the government's updated Energy Bills Support Factsheet on 12 October 2022, the ONS plans to complete its classification assessment of the EPG and EBRS during October 2022.
Once the classification review of the EPG and EBRS has been completed, the ONS will consider whether they affect inflation statistics. If so, the ONS will consider how the treatment can be consistently incorporated into those statistics. Further information about this aspect will be announced on 31 October 2022. This is the same day that the classification decisions will be updated and published in the latest update section of the Public sector classification guide.
Coronavirus (COVID-19) loan guarantee schemes
In its Economic and fiscal outlook - March 2022, the OBR estimated that a reduction on calls on the government's coronavirus loan guarantee schemes would reduce net borrowing by £4.4 billion in the financial year ending (FYE) March 2022. We will include any impact arising from a change in expected calls when sufficiently reliable data become available.
Back to table of contents13. Strengths and limitations
To supplement this release, we publish an accompanying public sector methodological guide and Public sector finances Quality and Methodology Information outlining the strengths, limitations, and appropriate uses of the public sector finances dataset.
Tax receipts
In the most recent months, tax receipts recorded on an accrued basis are subject to some uncertainty. This is because many taxes such as value added tax (VAT), corporation tax and Pay As You Earn (PAYE) income tax contain some forecast cash receipts data and are liable to revision when actual cash receipts data are received.
The forecasts underlying our current tax estimates reflect the expectations published in the Office for Budget Responsibility's (OBR) Economic and fiscal outlook - March 2022 and the subsequent monthly profiles published on 12 May 2022.
Local government and public corporations
In recent years, planned local government expenditure initially reported in local authority budgets has been systematically lower than final outturn current expenditure reported in the audited accounts and higher than that reported in final outturn capital expenditure. We therefore include adjustments to increase or decrease the amounts reported at the budget stage.
For the financial year ending (FYE) 2022, we include:
a £0.4 billion downward adjustment to Wales's capital expenditure
a £3.5 billion upward adjustment to England's current expenditure on goods and services
We apply a further £2.0 billion downward adjustment to budget forecast current expenditure on benefits in the FYE 2022, to reflect the most recently available data for housing benefits.
For the FYE 2023, we include:
a £0.8 billion downward adjustment to Scotland's capital expenditure
a £0.4 billion downward adjustment to Wales's capital expenditure
a £4.0 billion upward adjustment to England's current expenditure on goods and services
We apply a further £1.8 billion downward adjustment to budget forecast current expenditure on benefits in the FYE 2023, to reflect the most recently available data for housing benefits.
Public corporations' data in the most recent periods are initial estimates, largely based on the Office for Budget Responsibility (OBR)'s Economic and fiscal outlook - March 2022, with adjustments being applied as needed.
Back to table of contents15. Cite this statistical bulletin
Office for National Statistics (ONS), released 21 October 2022, ONS website, statistical bulletin, Public sector finances, UK: September 2022
Back to table of contents