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UK National Debt

Debt is what the public sector owes at a point in time; borrowing is the gap between spending and receipts during a month. These ONS observations are published after the period they describe, not updated live.

ONS public sector finances: latest debt observation August 2026. Figures are provisional and may be revised. Read the ONS release.

£2.99TNet debt excluding public sector banks · stock, £bn · end of August 2026
93.8%Net debt / annual GDP · end of August 2026
£18.3bnNet borrowing · monthly flow, £bn · August 2026
5.4%10-year gilt yield · 28 Sep 2026 · market yield, not average debt interest cost

Read the stock and flow separately

At the end of August 2026, the ONS debt stock was £2.99T. It reflects outstanding liabilities less liquid assets, not the cash needed to repay gilts this month.

In August 2026: A £18.3bn deficit: spending exceeded receipts that month. A smaller deficit still adds to the debt stock; it does not mean debt has fallen. Other transactions can also change the stock.

Gilt yields reflect market pricing of new and traded government bonds, not the interest rate on the entire existing debt. Explore how gilts work and how gilt yields affect mortgages.

Total Public Sector Net Debt

ONS public sector net debt excluding public sector banks is a stock measured at the end of each month, in £ billions. A monthly borrowing figure is not the same thing as the change in this stock.

Source: ONS (HF6W). Observation: August 2026; figures may be revised.

Debt-to-GDP Ratio

Raw debt figures are less useful without context. The debt-to-GDP ratio measures how large the debt is relative to the size of the economy. A ratio above 100% means debt exceeds a year of GDP; it does not mean all debt is due within a year.

Source: ONS (HF6X). Observation: August 2026; figures may be revised.

Monthly Government Borrowing

Net borrowing is the monthly gap between what the government spends and what it collects in taxes. Positive figures indicate a deficit (borrowing); negative figures indicate a surplus. The deficit tends to be seasonal — larger in some months than others due to the timing of tax receipts and spending.

Source: ONS (−J5II, sign reversed from the ONS time series to show deficits as positive). Observation: August 2026.

How UK Government Debt Works

Government borrowing is more complex than a household credit card. The mechanics of how debt is issued, who buys it, and what it costs matter for interest rates, gilt prices, and ultimately your mortgage and savings returns.

Gilt Issuance

The Debt Management Office (DMO) funds the deficit by selling gilts — government bonds. Regular auctions for conventional and index-linked gilts attract bids from primary dealers (large banks). When the government needs to borrow more, gilt supply rises, which can push yields higher.

How gilts work →

Interest Costs

Servicing the debt costs tens of billions per year in interest payments. The cost depends on gilt yields at the time of issuance and on RPI inflation (which affects index-linked gilts). When BoE rates and gilt yields rose sharply in 2022–23, debt interest costs surged, squeezing spending on other public services.

Who Holds UK Debt

UK pension funds and insurance companies are the largest domestic holders — they need long-dated gilts to match their liabilities. Overseas investors (sovereign wealth funds, foreign central banks) hold roughly a quarter. The Bank of England accumulated a large holding through QE, now being reduced via quantitative tightening.

Fiscal Rules

The Chancellor sets fiscal rules to constrain borrowing — typically targeting debt-to-GDP falling within 5 years and day-to-day spending balanced by tax revenues. These rules influence Budget decisions on tax and spending, and markets watch closely for any sign the rules might be breached.

UK tax system overview →

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Frequently Asked Questions

How much is the UK national debt?

ONS public sector net debt excluding public sector banks was £2.99T at the end of August 2026. This is a stock: liabilities less liquid assets, not the amount borrowed in one month.

What is the UK debt-to-GDP ratio?

ONS public sector net debt was 93.8% of annual GDP at the end of August 2026. This compares the debt stock with a year of economic output, not a monthly borrowing rate.

What is the difference between debt and borrowing?

Debt is the outstanding stock at a point in time; net borrowing is a flow over a month. A monthly deficit generally adds to debt, but the two series need not move by exactly the same amount because other transactions and valuation changes also affect debt.

Debt and borrowing data is sourced from the Office for National Statistics (ONS) public sector finances bulletin and updated at build time. Figures are subject to revision by the ONS. This page does not constitute financial advice. GiltEdge is not regulated by the FCA.