The UK government borrowed £23.3 billion in May, a figure so large it hasn’t been matched for that month since the pandemic peak of 2020. The Office for National Statistics published the data on June 19, and the numbers tell a story of a fiscal picture deteriorating faster than anyone in Whitehall predicted.
That May figure represents a 30% jump from the £17.9 billion recorded in the same month last year. It also overshot the Office for Budget Responsibility’s forecast of £17.7 billion by £5.6 billion.
Where the money went
The single biggest culprit is debt interest. Central government debt interest payments hit a record £11.7 billion for the month, a 54% increase compared to May 2025.
Inflation is the engine behind that surge. A significant portion of UK government debt is linked to the Retail Prices Index, meaning when inflation rises, so do the interest payments.
