Government debt in the United Kingdom reached over 2.9 trillion British pounds in 2023/24, compared with 1.9 trillion pounds in 2019/20. Although the amount of public sector debt has been rising for some time, there was a noticeable uptick between 2019/20 and 2020/21, when government spending increased substantially due to the economic impact of the COVID-19 pandemic.

Public sector net debt amounted to 88.9 percent of gross domestic product in the United Kingdom during the 2023/24 financial year, rising to 97.8 percent when the Bank of England is included. This is the highest debt incurred by the government since the early 1960s. 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 2022/23, the UK's government expenditure was approximately 1.15 trillion pounds, around 45.3 percent of GDP. This spending was financed by 1.02 trillion pounds of revenue raised, and 1.28 billion pounds of borrowing. Although the UK government can still borrow money in the future, it also needs to abide by certain fiscal rules, one of which is that debt should be falling within a five-year timeframe. Recent forecasts suggest that while this is expected to be the case, it is based on falling government deficits in the next five years. Next government faces hard choices Whoever wins the UK's 2024 general election will face tough economic choices in the coming years. Hitting fiscal targets, such as reducing the national debt, will require a careful balancing of the books, and possibly the need for either spending cuts or tax rises. The two major parties, Labour and the Conservatives, have both ruled out raising the main government tax sources, Income Tax, National Insurance, and VAT, and have so far remained silent on possible spending cuts. With limits on borrowing, and no tax rises or spending cuts, maintaining, let alone improving public services, will prove a challenging prospect for the next government.

The government of the United Kingdom borrowed approximately 121.9 billion British pounds in the 2023/24 financial year. In 2020/21, government borrowing was over 353 billion pounds, due to increased financial support to public services during the COVID-19 pandemic, combined with reduced revenue due to the lockdowns.

Key information about United Kingdom Government Debt: % of GDP

• United Kingdom Government debt accounted for 101.1 % of the country's Nominal GDP in Sep 2024, compared with the ratio of 100.9 % in the previous quarter.
• UK government debt to GDP ratio data is updated quarterly, available from Mar 1966 to Sep 2024.
• The data reached an all-time high of 107.5 % in Mar 2021 and a record low of 28.3 % in Dec 1990.

CEIC calculates quarterly Government Debt as % of Nominal GDP from quarterly Government Debt and rolling sum of quarterly Nominal GDP. The Office of National Statistics provides Government Debt in local currency. The Office for National Statistics provides Nominal GDP in local currency.


Related information about United Kingdom Government Debt: % of GDP

• In the latest reports, UK National Government Debt reached 3,810.9 USD bn in Sep 2024.
• The country's Nominal GDP reached 786.4 USD bn in Mar 2023.

The government of the United Kingdom borrowed approximately 1.9 percent worth of its GDP in the 2023/24 financial year, compared with three percent in 2022/23. In 2020/21, government borrowing reached 11.6 percent of GDP, due to increased financial support to public services during the COVID-19 pandemic, combined with reduced revenue because of societal lockdowns.

U.K. debt to gdp ratio for 2022 was 142.28%, a 44.57% decline from 2021.

• U.K. debt to gdp ratio for 2021 was 186.85%, a 9.76% decline from 2020.
• U.K. debt to gdp ratio for 2020 was 196.61%, a 36.29% increase from 2019.
• U.K. debt to gdp ratio for 2019 was 160.32%, a 2.16% increase from 2018.

Debt is the entire stock of direct government fixed-term contractual obligations to others outstanding on a particular date. It includes domestic and foreign liabilities such as currency and money deposits, securities other than shares, and loans. It is the gross amount of government liabilities reduced by the amount of equity and financial derivatives held by the government. Because debt is a stock rather than a flow, it is measured as of a given date, usually the last day of the fiscal year.

Public Sector Net Debt to GDP in the United Kingdom increased to 95.50 percent of GDP in February from 95.40 percent of GDP in January of 2025. This dataset includes a chart with historical data for the United Kingdom Public Sector Net Debt To GDP.

The ratio of national debt to gross domestic product (GDP) in the United Kingdom was forecast to continuously increase between 2024 and 2029 by in total 6.5 percentage points. After the seventh consecutive increasing year, the ratio is estimated to reach 108.34 percent and therefore a new peak in 2029. This indicator describes the general government gross debt in relation to the country's GDP. According to the International Monetary Fund, gross debt consists of all liabilities that require payment or payments of interest and/or principal by the debtor to the creditor at a date or dates in the future. The GDP, on the other hand, refers to the total value of final goods and services produced during a year.Find more statistics on other topics about the United Kingdom with key insights such as the gross domestic product per capita, the gross domestic product in current prices, and the share in the global GDP adjusted for purchasing power parity.

Private Debt to GDP in the United Kingdom decreased to 160.90 percent in 2023 from 171.90 percent in 2022. United Kingdom Private Debt to GDP - values, historical data, forecasts and news - updated on March of 2025.

Key information about UK Consolidated Fiscal Balance: % of GDP

• United Kingdom Consolidated Fiscal Balance recorded a deficit equal to 5.3 % of its Nominal GDP in Sep 2024, compared with a deficit equal to 5.9 % in the previous quarter
• UK Consolidated Fiscal Balance to GDP data is updated quarterly, available from Mar 1987 to Sep 2024, with an average ratio of -3.5 %
• The data reached an all-time high of 2.2 % in Jun 2000 and a record low of -25.6 % in Jun 2020

Office for National Statistics provides quarterly Consolidated Fiscal Balance as % of Nominal GDP.


Further information about UK Consolidated Fiscal Balance: % of GDP

• In the latest reports, UK National Government Debt reached 3,810.9 USD bn in Sep 2024
• UK Nominal GDP reached 786.4 USD bn in Mar 2023

Italy recorded a Government Debt to GDP of 135.30 percent of the country's Gross Domestic Product in 2024. This dataset provides - Italy Government Debt To GDP - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Greece recorded a Government Debt to GDP of 161.90 percent of the country's Gross Domestic Product in 2023. This dataset provides the latest reported value for - Greece Government Debt to GDP - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

Quarterly transactions in trade in goods and services, primary, secondary and investment income, transactions with EU and non-EU countries and capital account.

Spain recorded a Government Debt to GDP of 107.70 percent of the country's Gross Domestic Product in 2023. This dataset provides - Spain Government Debt To GDP - actual values, historical data, forecast, chart, statistics, economic calendar and news.