UK public sector net borrowing excluding public sector banks was £15,989 million in June 2026, the Office for National Statistics reported on 21 July 2026. The figure, rounded to £16 billion in summary reporting, was £7.9 billion lower than the same month a year earlier — a 33% year-on-year fall — and came in slightly below forecasts.

The ONS attributed the reduction to rising receipts and marginally lower expenditure, driven principally by reduced inflation-linked debt interest costs. The central government net cash requirement stood at £19,083 million for the month. The public sector current budget deficit excluding public sector banks was £11,750 million, and public sector net investment excluding public sector banks was £4,239 million.

The June data marks a sharp reversal of May's picture. Public sector borrowing in May 2026 was £23.3 billion, £5.4 billion (30.4%) higher than in May 2025, and the ONS reported borrowing in the financial year to May 2026 at £46.3 billion — £8.9 billion (23.9%) above the same period a year earlier. Interest payable on government debt reached £11.7 billion in May, the highest ever recorded for any May. The UK was forecast to run a £115.5 billion deficit in the 2026/27 financial year, equivalent to 3.6% of GDP, down from 4.3% in 2025/26.

Borrowing in the financial year to June 2026 ranks as the 10th highest April-to-June period since comparable monthly records began in 1993. Despite the better-than-forecast June outturn, the UK continues to carry significant public debt. Public sector net debt excluding public sector banks stood at £2,989.9 billion in June 2026, equivalent to 94.9% of GDP.

The borrowing figures were accompanied by separate ONS labour market data showing the UK unemployment rate unchanged between March and May 2026. The statistics body described the labour market as "relatively steady."

The broader context here is one of monthly volatility set against a still-elevated debt stock. June's fall in borrowing, while welcome to the Treasury, follows a May figure that itself undershot expectations on the upside and set a record for May debt interest. The year-on-year improvement in June was driven largely by the mechanical effect of lower inflation-linked interest costs on index-linked gilts, rather than by structural fiscal tightening. With debt at nearly 95% of GDP and the Office for Budget Responsibility forecasting a £115.5 billion deficit for the full year, the June figure provides fiscal headroom only at the margin.

The contrast between May and June also illustrates the difficulty of reading medium-term fiscal trends from single-month data. Borrowing in the financial year to May was running £8.9 billion above the previous year; one month later, the year-on-year trajectory has improved materially, though the cumulative position remains historically high. The next ONS public sector finances release, covering July 2026, is scheduled for 21 August 2026.

No HM Treasury press release or commentary on the June figures had been identified at the time of publication. The Treasury published a companion bulletin for the May release; no equivalent document for June appeared in the search results.