Government debt in the United Kingdom reached over 2.8 trillion British pounds in 2024/25, compared with 2.69 trillion pounds in the previous financial year. Although debt has been increasing throughout this period, there is a noticeable jump between 2019/20, and 2020/21, when debt increased from 1.82 trillion pounds, to 2.15 trillion. The UK's government debt was the equivalent of 93.5 percent of GDP in 2024/25, and is expected to increase slightly in coming years, and not start falling until the end of this decade. Public finances in a tight spot With government debt approaching 100 percent of GDP, the UK finds itself in a tricky fiscal situation. If the UK can't reduce it's spending, or increase its revenue, the government will have to continue borrowing large amounts, increasing the debt further. Adding to the problem, is the fact that financing this debt has got steadily more expensive recently, with the government currently spending more on debt interest than it does on defence, transport, and public order and safety. Can the UK grow out its debt? After the Second World War, when the national debt reached over 250 percent of GDP, the UK managed to reduce its debt-to-GDP ratio, due to the economy growing faster than its debt over a long period of time. This is certainly the hope of the current Labour government, who are seeking to avoid significant tax and spending adjustments by strengthening the economy. Overdue investments in infrastructure and increased capital spending may eventually achieve this goal, but the government's declining popularity suggests they may not be in power by the time these policies might eventually bear fruit.

Public sector net debt amounted to 93.5 percent of gross domestic product in the United Kingdom during the 2024/25 financial year. Following the COVID-19 pandemic, UK government debt has reached levels not seen since the early 1960s, due to a significant increase in borrowing in 2020/21. After peaking at 251.7 percent shortly after the end of the Second World War, government debt in the UK gradually fell, before a sharp increase in the late 2000s at the time of the global financial crisis. Debt not expected to start falling until 2029/30 In 2024/25, the UK's government expenditure was approximately 1.28 trillion pounds, around 44 percent of GDP. This spending was financed by 1.14 trillion pounds of revenue raised, and almost 150 billion pounds of borrowing. Although the UK government can continue to borrow money to finance its spending, the amount spent on debt interest has increased significantly in recent years. Current forecasts suggest that while the debt is eventually expected to start declining, this is based on falling government deficits in the next five years. Government facing hard choices Hitting fiscal targets, such as reducing the national debt, will require a careful balancing of the books from the current government, and the possibility for either spending cuts or tax rises. Although Labour ruled out raising the main government tax sources, Income Tax, National Insurance, and VAT, at the 2024 election, they did raise National Insurance for employers (rather than employees) and also cut Winter Fuel allowances for large numbers of pensioners. Less than a year after implementing cuts to Winter Fuel, the government performed a U-Turn on the issue, and also held back on more significant cuts to welfare.

United Kingdom UK: Gross Public Debt: USD: Central Government: Debt Securities: Market Value data was reported at 2,693.370 USD bn in Jun 2018. This records a decrease from the previous number of 2,860.125 USD bn for Mar 2018. United Kingdom UK: Gross Public Debt: USD: Central Government: Debt Securities: Market Value data is updated quarterly, averaging 935.915 USD bn from Mar 1995 (Median) to Jun 2018, with 94 observations. The data reached an all-time high of 2,860.125 USD bn in Mar 2018 and a record low of 396.616 USD bn in Mar 1995. United Kingdom UK: Gross Public Debt: USD: Central Government: Debt Securities: Market Value data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s United Kingdom – Table UK.World Bank.QPSD: Gross Public Debt: Central Government.

United Kingdom UK: Gross Public Debt: USD: Central Government: Debt Securities, Loans, SDRs, Currency and Deposits data was reported at 2,348.012 USD bn in Jun 2018. This records a decrease from the previous number of 2,464.089 USD bn for Mar 2018. United Kingdom UK: Gross Public Debt: USD: Central Government: Debt Securities, Loans, SDRs, Currency and Deposits data is updated quarterly, averaging 1,098.967 USD bn from Mar 1995 (Median) to Jun 2018, with 94 observations. The data reached an all-time high of 2,638.011 USD bn in Jun 2014 and a record low of 541.933 USD bn in Mar 1995. United Kingdom UK: Gross Public Debt: USD: Central Government: Debt Securities, Loans, SDRs, Currency and Deposits data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s United Kingdom – Table UK.World Bank: QPSD: Gross Public Debt: Central Government.

This statistic shows the general government gross consolidated debt (national debt) at a nominal value of the United Kingdom (UK) from 2000 to 2019. After a small decrease from 2000/01 to 2001/02 national debt increased each year during this period. The largest increase came from 2008/09 to 2009/10 when national debt rose by 255 billion pounds.

Public sector finances analytical tables (PSAT) showing transactions related to borrowing by sub-sector. Total Managed Expenditure (TME) is also provided.

United Kingdom UK: Gross Public Debt: % of GDP: Central Government: Debt Securities, Loans, Currency and Deposits data was reported at 85.563 % in Jun 2018. This records an increase from the previous number of 84.585 % for Mar 2018. United Kingdom UK: Gross Public Debt: % of GDP: Central Government: Debt Securities, Loans, Currency and Deposits data is updated quarterly, averaging 42.837 % from Mar 1995 (Median) to Jun 2018, with 94 observations. The data reached an all-time high of 86.910 % in Dec 2015 and a record low of 33.337 % in Mar 2002. United Kingdom UK: Gross Public Debt: % of GDP: Central Government: Debt Securities, Loans, Currency and Deposits data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s United Kingdom – Table UK.World Bank.QPSD: Gross Public Debt: % of GDP: Central Government.

This statistic shows the public sector net borrowing (PSNB) of the United Kingdom (UK) from ************ to *************. After net government borrowing reached minus **** billion British pounds (GBP) in ************, it went up to *** billion in **************.

This statistic shows the general government gross consolidated debt (national debt) as a percentage of gross domestic product (GDP) in the United Kingdom (UK) from fiscal year 2000/01 to 2018/19. After 2002/03, national debt as a percentage of GDP rose continuously over the remainder of the period to a peak in 2016/17.

United Kingdom UK: Gross Public Debt: % of GDP: Central Government: Debt Securities and Loans data was reported at 76.564 % in Jun 2018. This records an increase from the previous number of 75.671 % for Mar 2018. United Kingdom UK: Gross Public Debt: % of GDP: Central Government: Debt Securities and Loans data is updated quarterly, averaging 34.681 % from Mar 1995 (Median) to Jun 2018, with 94 observations. The data reached an all-time high of 78.703 % in Jun 2016 and a record low of 26.880 % in Mar 2002. United Kingdom UK: Gross Public Debt: % of GDP: Central Government: Debt Securities and Loans data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s United Kingdom – Table UK.World Bank.QPSD: Gross Public Debt: % of GDP: Central Government.

In the third quarter of 2024, the outstanding debt securities from UK financial corporations was four times greater than those from non-financial corporations. The total outstanding debt amounted to *** trillion U.S. dollars as of the third quarter of 2024, with the majority of outstanding corporate bonds being issued by financial corporations.