Public sector finances, UK: November 2024

• Borrowing – the difference between public sector spending and income – was £11.2 billion in November 2024, £3.4 billion less than in November 2023 and the lowest November borrowing for three years.

• Current budget deficit – borrowing to fund day-to-day public sector activities – was £6.8 billion in November 2024, £3.5 billion less than in November 2023 and the lowest November current budget deficit for three years.

• The interest payable on central government debt was £3.0 billion in November 2024, largely because of movements in the Retail Price Index; this was £4.7 billion less than in November 2023 and the lowest November figure for five years.

• Borrowing in the financial year to November 2024 was £113.2 billion, £0.4 billion less than at the same point in the last financial year but the third-highest financial year-to-November borrowing since monthly records began in January 1993.

• Public sector net debt excluding public sector banks was provisionally estimated at 98.1% of gross domestic product (GDP) at the end of November 2024; this was 1.2 percentage points more than at the end of November 2023, and remains at levels last seen in the early 1960s.

• Public sector net financial liabilities excluding public sector banks were provisionally estimated at 84.6% of GDP at the end of November 2024; this was 2.2 percentage points more than at the end of November 2023, and 13.5 percentage points lower than public sector net debt.

• Central government net cash requirement (excluding UK Asset Resolution Ltd and Network Rail) was £16.3 billion in November 2024, £1.1 billion less than in November 2023.

The public sector spent more than it received in taxes and other income in November 2024.

Initial estimates suggest it was required to borrow £11.2 billion. This is the lowest November borrowing since 2021, when it was £7.5 billion, and £3.4 billion less than November last year.

Public sector borrowing consists of two broad components: the current budget deficit and net investment.

The current budget deficit can be considered as borrowing to fund day-to-day public sector activities. This makes up £6.8 billion of the £11.2 billion total borrowing in November 2024.

This means that the public sector spent £6.8 billion more on the provision of day-to-day public services than it received in taxes and other current receipts. This was the lowest November current budget deficit for three years and was £3.5 billion less than in November 2023.

The public sector's net (capital) investment was £4.5 billion in November 2024, equal to that of November 2023.

A breakdown of net borrowing by subsector and a summary of central government receipts and expenditure data are presented in Tables 1 to 3 in our Public sector finances summary tables: Appendix M dataset.

Central government borrowing

Central government forms the largest part of the public sector and includes government departments such as HM Revenue and Customs, the Department of Health and Social Care, the Department for Education, and the Ministry of Defence.

The relationship between central government's receipts and expenditure is an important determinant of public sector net borrowing. Central government borrowed £6.7 billion in November 2024, just over half of the £11.2 borrowed by the whole public sector in that month.

Central government current receipts

Central government's receipts were £81.5 billion in November 2024, £3.2 billion more than in November 2023. Of this £3.2 billion increase in revenue:

• central government tax receipts increased by £3.8 billion to £61.8 billion; this included increases of £1.6 billion in Income Tax, £1.0 billion in Corporation Tax and £0.3 billion in Value Added Tax (VAT) receipts

• compulsory social contributions decreased by £1.0 billion to £13.8 billion, largely because of the reductions in the main rates of National Insurance in early 2024

A detailed breakdown of central government income is presented in our Public sector current receipts: Appendix D dataset.

Central government current expenditure

Central government spending data for November 2024 are provisional. There is uncertainty around these estimates until more detailed departmental information becomes available later in the financial year.

Central government's total expenditure was £88.2 billion in November 2024, £0.2 billion less than in November 2023. Of this overall £0.2 billion decrease in spending:

• interest payable on central government debt decreased by £4.7 billion to £3.0 billion, largely because the interest payable on index-linked gilts rises and falls with the Retail Prices Index (RPI)

• central government departmental spending on goods and services increased by £2.6 billion to £36.6 billion, as pay rises and inflation increased running costs

• net social benefits paid by central government increased by £1.2 billion to £25.4 billion, largely caused by inflation-linked increases in many benefits

• payments to support the day-to-day running of local government increased by £0.6 billion to £10.2 billion; these intra-government transfers are both central government spending and a local government receipt, so they have no effect on overall public sector borrowing

Central government net investment

Central government net investment was £4.2 billion in November 2024, £0.5 billion less than in the November 2023. This decrease was largely because of a reduction in capital grants paid to both the private sector and local government.

Interest payable on central government debt

In November 2024, the interest payable on central government debt was £3.0 billion. This is a decrease of £4.7 billion, compared with November 2023, and the lowest November figure since November 2019, when it was £2.3 billion.

The large monthly changes in the Retail Price Index (RPI) since early 2021 have led to considerable volatility in debt interest payable, with the largest three months on record occurring in 2022 and 2023. The additional interest caused by RPI inflation is described as "capital uplift" and affects the value of the gilt principal.

Capital uplift was negative £1.8 billion in November 2024, largely reflecting the 0.3% decrease in the RPI between August and September 2024. This decreased the capital uplift on the three-month lagged index-linked gilts (as shown on the UK Debt Management Office website), which make up around 95% of the index-linked gilt stock.

A monthly time series of capital uplift on the index-linked gilts in issue is available as series identifier code JNYY. Figure 2 illustrates this series as the blue portion of each bar and excludes the uplift payable at the time of an index-linked gilt redemption. These redemption payments are already recorded as accrued interest payable across the life of each index gilt.

For further details of our approach, see our Calculation of interest payable on government gilts methodology.

Our provisional estimate for the total borrowed in the financial year to November 2024 is £113.2 billion, £0.4 billion less than was borrowed in the same eight months last year. This is the third-highest financial year-to-November borrowing since monthly records began in January 1993, behind those of the equivalent period in 2020 and 2023.

Within public sector borrowing in the financial year to November 2024, the current budget deficit was £76.8 billion, £5.3 billion less than in the same period a year ago.

Public sector net investment increased by £4.9 billion to £36.4 billion for the same eight-month period.

A breakdown of net borrowing by subsector and a summary of central government receipts and expenditure data are presented in Tables 1 to 3 in our Public sector finances summary tables: Appendix M dataset.

Central government borrowed £128.4 billion of the £113.2 billion borrowed by the public sector (excluding public sector banks) in the financial year to November 2024. This larger central government borrowing was partially offset by a £15.5 billion Bank of England (BoE) surplus and balanced by remaining subsectors.

The borrowing of both subsectors is affected by payments totalling £30.8 billion made by central government to the BoE in this period, under its Asset Purchase Facility (APF) Fund indemnity agreement.

As with similar intra-public sector transactions, these payments are public sector borrowing neutral. They increased central government's borrowing by £30.8 billion in the financial year to November 2024, but reduced the borrowing impact of the BoE by an equal and offsetting amount.

Central government current receipts

Central government's current receipts were £651.2 billion in the financial year to November 2024, £21.9 billion (3.5%) more than in the same period last year. Of this £21.9 billion increase in revenue:

• central government tax receipts increased by £26.2 billion to £494.0 billion, with increases in Income Tax, Corporation Tax and Value Added Tax (VAT) receipts of £13.3 billion, £5.6 billion, and £3.4 billion, respectively

• compulsory social contributions decreased by £7.0 billion to £109.8 billion, largely because of the reductions in the main rates of National Insurance in early 2024

A detailed breakdown of central government income is presented in our Public sector current receipts: Appendix D dataset.

Central government current expenditure

Central government's total expenditure was provisionally estimated as £779.7 billion in the financial year to November 2024, £19.7 billion (2.6%) more than in the same eight-month period in 2023. Of this overall £19.7 billion increase in spending:

• central government departmental spending on goods and services increased by £15.3 billion to £283.1 billion, as pay rises and inflation increased running costs

• net social benefits paid by central government increased by £8.5 billion to £204.0 billion, largely caused by inflation-linked increases in many benefits

• payments to support the day-to-day running of local government increased by £7.4 billion to £97.9 billion; these intra-government transfers have no impact on overall public sector borrowing (PSNB ex)

• interest payable on central government debt decreased by £6.8 billion to £56.7 billion, largely because the interest payable on index-linked gilts rises and falls with the Retail Prices Index (RPI)

• current grants abroad decreased £4.0 billion to £4.4 billion, largely because of lower payments made to the EU

• subsidies paid by central government decreased by £3.4 billion to £18.7 billion, largely because of the closure of the energy support schemes that were active until June 2023

Central government net investment

Central government net investment in the financial year to November 2024 was £72.6 billion, £0.2 billion more than at the same point in the last financial year. This includes the regular payments from HM Treasury to the BoE APF Fund, which decreased by £2.4 billion, compared with a year earlier. These intra-public sector transfers have no impact on overall public sector borrowing (PSNB ex).

Local government

Initial estimates suggest that local government borrowing was £2.2 billion in the eight months to November 2024. This is £0.9 billion lower than in the same period a year earlier. Our provisional monthly estimates for the UK are currently based on published budget data for England, Scotland, and Wales, with estimates included for Northern Ireland.

The public sector borrowed £131.3 billion in the financial year ending (FYE) March 2024. This was £8.0 billion more than the £123.3 billion borrowed in FYE March 2023, and £9.4 billion more than the £121.9 billion forecast by the Office for Budget Responsibility.

Expressing borrowing as a ratio of gross domestic product (GDP) – the value of everything produced in the UK economy in a 12-month period – gives an estimate of its affordability and provides a more thorough and reliable measure for comparison of the UK's fiscal position over time.

Our current estimate for the total borrowed in the financial year ending (FYE) March 2024 as a ratio of GDP is 4.8%. This is 0.4 percentage points higher than our initial estimate of 4.4% published in our March 2024 release.

Our article, The use of GDP in public sector fiscal ratio statistics, describes the methodology used for the presentation of our GDP ratios.

The public sector balance sheet describes its financial position at a point in time. It shows its liabilities (amounts owed) and its assets (amounts owned).

There are several measures of the public sector balance sheet that we discuss in our What the UK government owns and what it owes blog.

Table 3 presents the narrowest balance sheet measure, which is the redemption value of central government gilts. It then builds on this measure, widening coverage by both the subsector and the range of asset and liability types included, to reach the far wider measure of public sector net worth. We explain this measure in our Wider measures of the public sector balance sheet: public sector net worth methodology.

Our Public sector balance sheet tables: Appendix N dataset presents a detailed reconciliation between the balance sheet measures summarised in Table 3.

Public sector net debt

The most widely used balance sheet measure used to describe the UK public sector's financial position at a point in time is public sector net debt excluding public sector banks (PSND ex). Expressing net debt as a ratio of gross domestic product (GDP) gives an estimate of its affordability and provides a more thorough and reliable measure for comparison of the UK's fiscal position over time.

The net debt-to-GDP ratio at the end of November 2024 was provisionally estimated at 98.1%, 1.2 percentage points higher than a year ago. However, this is a highly provisional estimate and is likely to be revised in future publications because it partly relies on GDP estimates based on the October 2024 Office for Budget Responsibility forecast. Our blog explains why our estimates of the debt to GDP ratio are susceptible to revision.

Public sector net debt excluding the Bank of England (BoE) was £2,598.0 billion at the end of November 2024, or around 90.4% of GDP. This is £219.8 billion (or 7.7 percentage points of GDP) less than the wider measure of net debt (including the BoE). This difference is largely a result of the BoE's quantitative easing activities, including the gilt-purchasing activities of the Asset Purchase Facility (APF) Fund.

The APF Fund's gilt holding is not recorded directly as a component of public sector net debt. Instead, in November 2024, we recorded the £95.1 billion difference between the £654.5 billion of reserves created to purchase its gilts (at market value at the time of purchase) and their £559.4 billion redemption value.

For details of the BoE's contribution to public sector net debt, see Table PSA9A of our Public sector finances tables 1 to 10: Appendix A dataset.

Public sector net financial liabilities

Public sector net financial liabilities excluding public sector banks (PSNFL ex) were £2,430.3 billion at the end of November 2024, which is equivalent to 84.6% of GDP. This was £153.3 billion (2.2 percentage points) more than at the end of November 2023.

PSNFL ex adds further assets and liabilities to debt (PSND ex). These extra assets are currently valued at more than the extra liabilities. This means that PSNFL ex is currently 13.5 percentage points of GDP less than PSND ex, which stood at 98.1% of GDP at the end of November 2024.

On 30 October 2024, we published an explanation of the financial assets and liabilities captured in PSNFL ex in our PSNFL methodology. Additionally, we published a blog explaining the PSNFL measure, because it has been selected by the UK government as the reference for a balance sheet fiscal rule.

Our Public sector balance sheet tables: Appendix N presents a reconciliation between PSND ex and PSNFL ex, in the context of the balance sheet measures summarised in Table 3.

The additional assets and liabilities that fall outside of the PSND ex boundary, but are included in these wider balance sheet measures, are not updated monthly. Instead, they are updated quarterly, or when data becomes available. These data were last updated on 20 December 2024.

A more detailed presentation of the public sector balance sheet is available in our Public sector net worth: Appendix O dataset, released on 20 December 2024.

The data for the latest months of every release contain a degree of forecasts. These are then replaced by improved estimates, as further data are made available, and finally by outturn data.

Tables 4 to 6 of our Public sector finances summary tables: Appendix M dataset compare our latest public sector finances data with those in our Public sector finances, UK: October 2024 bulletin, published on 21 November 2024. They highlight the revisions to borrowing by subsector, with additional detail for central government receipts and expenditure.

Our Public sector finance revisions analysis: Appendix P dataset records monthly borrowing data as at first and at subsequent publications, graphically illustrating any potential bias to our early estimates.

Notable updates December 2024

We update our dataset each quarter with information compiled within the national accounts and also, to make some regular annual data updates to incorporate the latest available data.

This month, we have published updates relating to:

• improvements to our recording of Bank of England (BoE) data

• the reclassification of Bulb Energy Limited in Special Administration Regime (Bulb SAR)

• the classification of the Bank of England (BoE) levy, Octopus Energy Operations Limited (HiveCo) and Octopus Energy Retail Limited (BidCo) into the public sector finances

We have also included regular annual updates for elements of public sector-funded pensions.

We discuss the updates to the BoE, Bulb SAR, HiveCo, BidCo, and pensions in more detail in our Economic statistics classifications and developments in PSF statistics: November 2024 article.

A summary of the revisions resulting from these changes are presented in our Changes to public sector finance statistics: Appendix L dataset.

Regular updates to local government data

We have updated our previous local government estimates with recently published data this month. These updates include:

• England capital final outturn for the financial year ending (FYE) March 2024

• England capital payments and receipts for July to September 2024

• England revenue first release outturn for FYE March 2024

• updated England revenue budget data for FYE March 2025, because the Ministry of Housing, Communities and Local Government (MHCLG) republished data to account for previously missing local authorities

• Wales capital outturn for FYE March 2024

• Wales revenue outturn for FYE March 2024

• Northern Ireland capital and revenue estimates for FYE March 2024

Regular updates to public corporations

We have updated our previous non-financial public corporations estimates with recently published data this month:

• whole of government accounts data for FYE March 2022

• Housing Revenue Account data for FYE March 2024

We have also updated our forecasts for FYE 2025 to include estimates based on OBR's Economic and fiscal outlook – October 2024 report.

Revisions to public sector net borrowing in the financial year to October 2024

Since publishing our October 2024 release, we have increased our estimate of public sector net borrowing (PSNB ex) in the first seven months of the financial year by £5.3 billion to £102.0 billion.

Of this £5.3 billion upward revision to borrowing:

• £2.6 billion was the result of regular quarterly updates to our local government data

• £2.0 billion was because of regular annual updates to our public sector-funded pensions data

Revisions to public sector net borrowing in the financial year ending March 2024

Since publishing our October 2024 release, we have increased our estimate of PSNB ex in the financial year ending (FYE) March 2024 by £6.3 billion to £131.3 billion.

Of this £6.3 billion upward revision to borrowing:

• £4.3 billion was the result of regular quarterly updates to our local government data

• £1.9 billion was because of regular annual updates to our public sector-funded pensions data

Revisions to public sector net borrowing in earlier financial years

We have updated our estimate of PSNB ex in each of the financial years back to FYE March 2021 to include the data updates, and the implementation of classification decisions described above.

A summary of the larger changes are presented in our Changes to public sector finance statistics: Appendix L dataset.

Revisions to public sector net cash requirement in the financial year to October 2024

Since publishing our October 2024 release, we have increased our estimate of public sector net cash requirement (PSNCR ex) in the first seven months of the financial year by £26.7 billion to £53.0 billion.

This change was largely because of a reduction of £26.5 billion in BoE cash surplus from £99.5 billion to £73.1 billion, which resulted from the double counting of Term Funding Scheme repayments to BoE from private sector institutions that we identified in our quality assurance work. These changes affect each financial year back to FYE March 2019.

Revisions to public sector net debt (PSND ex) at the end of October 2024

Since publishing our October 2024 release, we have reduced our estimate of debt at the end of October 2024 by £7.5 billion to £2,784.0 billion.

This change was because of a combination of several regular data updates and implementing improvements to our dataset. The most notable factors affecting debt at the end of October were:

• improvements to our BoE estimates, reducing its contribution to debt by £6.1 billion

• an annual update to our pensions data, reducing public sector-funded pensions' contribution to debt by £4.4 billion

• an annual update to our finance leasing data, increasing central government debt by £0.7 billion

• a quarterly update to our local government loans data, increasing local government loan liabilities by £1.5 billion

• a quarterly update to our public non-financial corporations data, increasing their contribution to debt by £0.7 billion

These changes are summarised in Table 7 of our Public sector finances summary tables: Appendix M dataset, which also presents revisions to public sector net financial liabilities (PSNFL ex), our other headline balance sheet measure.

In addition to our regular monthly updates, we also present a summary of the revisions to our balance sheet measures caused by our annual updates to BoE and pensions data, and our updates to our recording of Bulb SAR and its associated components, in our Changes to public sector finance statistics: Appendix L dataset.

Public sector

In the UK, the public sector consists of six subsectors: central government, local government, public non-financial corporations, public sector funded pensions, the Bank of England (BoE), and public financial corporations (including public sector banks). The figures presented in this release exclude public sector banks unless otherwise noted.

The NatWest Group, the only remaining public sector bank, was reclassified to the private sector as of June 2024.

Public sector current budget deficit

Public sector current budget deficit (PSCBD) is the gap between current expenditure and current receipts on an accruals basis, having taken account of depreciation. PSCBD is effectively an estimate of borrowing to fund day-to-day public sector activities and is the reference statistic used for a UK government fiscal rule.

The current budget is in surplus when receipts are greater than expenditure and is indicated with a negative sign.

Public sector net borrowing

Public sector net borrowing (PSNB) is the gap between total expenditure and current receipts on an accruals basis. If receipts exceed expenditure, this is referred to as a surplus and is indicated with a negative sign. Borrowing is often referred to by commentators as "the deficit".

Public sector current budget deficit and net borrowing are measured on an accruals basis, where transactions for revenue are recorded when earned and expenses are recorded when incurred, rather than when the bills are paid (on a cash basis). 

Central government net cash requirement

The central government net cash requirement (CGNCR) represents the cash needed to be raised from the financial markets over a period 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.

Public sector net debt

Public sector net debt (PSND), often referred to by commentators as "the national debt", represents the amount of money the public sector owes to the private sector and overseas (in the form of loans, debt securities, deposit holdings and currency), net of liquid financial assets held.

Public sector net financial liabilities

Public sector net financial liabilities (PSNFL) is a wider measure of the balance sheet than public sector net debt and includes all financial assets and liabilities recognised in the national accounts. PSNFL is the reference statistic used for a UK government fiscal rule and is sometimes referred to as "net financial debt".

Broadening the PSNFL measure to include the public sector's non-financial assets provides public sector net worth (PSNW), our widest balance sheet measure.

Methodology guides

To supplement this release, we publish an accompanying methodological guide and quality and methodology information report outlining the strengths, limitations, and appropriate uses of government finance statistics.

We also explain the recording of interest payable to holders of UK government gilts in the UK public sector finances in our Calculation of interest payable on government gilts methodology and our Use of gross domestic product (GDP) in public sector fiscal ratio statistics methodology.

Accredited official statistics

Public sector net borrowing, cash requirement and debt are accredited official statistics. These accredited official statistics were independently reviewed by the Office for Statistics Regulation in June 2017. They comply with the standards of trustworthiness, quality, and value in the Code of Practice for Statistics and should be labelled "accredited official statistics".

Official statistics

Public sector net financial liabilities and public sector net financial worth are both official statistics. These measures were introduced after June 2017, and so have not yet been reviewed by the Office for Statistics Regulation. 

Official statistics in development

Public sector net worth is labelled as "official statistics in development". Until October 2023, these were called "experimental statistics". Read more about the change in our guide to official statistics in development.

Tax receipts and social contributions

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 generally reflect the expectations published in the Office for Budget Responsibility's (OBR's) Economic and fiscal outlook – March 2024 report. However, this month we referenced the updated forecasts published in OBR's Economic and fiscal outlook – October 2024 report in our latest estimates of VAT, Corporation Tax, PAYE Income Tax, and National Insurance Contributions. We will take account of the updated OBR forecasts for all taxes and other receipts collected by HM Revenue and Customs in our January publication.

Changes to National Insurance Contributions

The UK government announced changes to the National Insurance Contributions paid by employers in the Autumn Budget 2024. This change comes into effect from 6 April 2025.

Local government and public corporations

Local government data for the financial year ending (FYE) March 2025 are provisional estimates for the UK. They are largely based on published budget data for England, Scotland, and Wales, and with estimates included for Northern Ireland.

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 generally higher than that reported in final outturn capital expenditure. Therefore, we may include adjustments to increase or decrease the amounts reported at the budget stage.

For FYE March 2024, we include a £0.5 billion downward adjustment to Scotland's capital expenditure.

For FYE March 2025, we include a £3.0 billion upward adjustment to England's current expenditure.

To reflect the most recently available data for housing benefits, we have applied further downward adjustments to budget data for current expenditure on benefits of £0.2 billion in FYE 2024 and £1.6 billion in FYE 2025.

Data for public corporations in FYE 2024 are largely based on the OBR's Economic and fiscal outlook – October 2024 report, and are supplemented by in-year estimates for train operating companies, the Housing Revenue Account, and surveyed public corporations.

Comparing our data with official forecasts

The independent OBR is responsible for the production of official forecasts for the UK government. These forecasts are usually produced twice a year, in spring and autumn. The latest forecast was published in the OBR's Economic and fiscal outlook – October 2024 report. The next OBR forecast will be published on 26 March 2025.