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Public sector net borrowing July 2026

ended 21. August 2026

The latest snapshot of the country's finances is out. Key points below, full dataset >> here <<. You thoughts ASAP please.

  • Borrowing – the difference between total public sector spending and income – was £1.8 billion in July 2026; this was £0.7 billion (68.7%) more than in July 2025, and £2.3 billion above the Office for Budget Responsibility (OBR) forecast.
  • Self-assessed (SA) income tax receipts in July 2026 were £17.1 billion, £1.7 billion more than in July 2025; however, because of the possibility of delayed July payments, we recommend considering July and August SA income tax receipts as a whole when making year-on-year comparisons.
  • Borrowing was £56.7 billion in the financial year (FY) to July 2026; this was £6.0 billion (9.6%) less than in the same period last year, but £2.3 billion above the OBR forecast.
  • Borrowing in the FY to July 2026 was 1.8% of gross domestic product (GDP); this was 0.3 percentage points lower than in the same period a year earlier, and the 12th lowest April to July period since comparable monthly records began, in 1993.

3 responses from the Newspage community

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Editor
Tony Sanchez
Founder at Bridging Loan Directory
The £1.8bn headline looks relatively benign, but July is a major month for self-assessed income tax and the ONS cautions against judging those receipts before August’s figures are available.

The year-to-date position provides a clearer picture. Borrowing is £6bn lower than at the same point last year, but remains £2.3bn above the OBR forecast. The direction has improved, but the public finances are still not performing quite as planned.

For the property market, that means fiscal uncertainty is unlikely to disappear. Investors and developers will remain alert to the possibility of further tax changes, while uncertainty over future costs can delay purchases, refinancing and development decisions. This is not a disastrous set of figures, but neither does it provide the government with much additional room for manoeuvre.
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Editor
Riz Malik
Independent Financial Adviser at R3 Wealth
With the budget looming those expecting deep tax cuts may be sorely disappointed. The Chancellors giveaways will need to be carefully measured especially considering the distance here with OBR forecasts. Remember, the Bond market is king and some of his predecessors learnt that the hard way.
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Editor
Anita Wright
Chartered Financial Planner at Ribble Wealth Management
Look past the headline. Borrowing in the year to July is down £6bn on last year, yet still overshoots the OBR by £2.3bn and July alone was up 69% The errors only ever run one way. That tells you something. A ratio of 1.8% of GDP is a flow, and flows flatter. The stock is what bites: 104% debt to GDP, rolled over into a gilt market that is charging for doubt rather than lending on trust. Nor does this sit in isolation. The West is levered into a global cycle that is slowing at the same moment governments need it to accelerate. The pain comes first: money gets tight, demand fades, commodity prices fall. Then comes the response we always get more borrowing, more printing, a weaker pound. Taxing the same shrinking base harder will not close this gap. And when the sums no longer add up, governments quietly let the currency take the strain