FX.co ★ UK Public Borrowing Above Forecasts

UK public sector net borrowing (excluding public sector banks) climbed to £14.3 billion in February 2026, up from £12.1 billion a year earlier and well above market expectations of £8.5 billion. This was the second-highest borrowing figure for any February since records began in 1993, surpassed only in 2021. Year-on-year, public sector expenditure rose by £10.8 billion, driven by higher spending on public services, welfare benefits, debt interest, and investment. Central government debt interest payments reached a record high for the month of February. At the same time, total public sector receipts increased by £8.6 billion, partly due to late self-assessment tax payments that were due on 31 January but recorded in February. For the financial year to February, borrowing totalled £125.9 billion, down £11.9 billion, or 8.7%, from the same 11-month period a year earlier. Nonetheless, it remained the fourth-highest April-to-February borrowing on record and was only slightly below the Office for Budget Responsibility’s forecast of £127.8 billion.