Cynnwys
- Other pages in this release
- Main points
- Impact of coronavirus (COVID-19) on the public finances
- Borrowing in February 2022
- Borrowing in the financial year-to-February 2022
- Central government net cash requirement
- Debt
- Revisions
- Public sector finances data
- Glossary
- Measuring the data
- Strengths and limitations
- Related links
1. Other pages in this release
Other commentary from the latest public sector finances data can be found on the following pages:
Nôl i'r tabl cynnwys2. Main points
Public sector net borrowing excluding public sector banks (PSNB ex) was £13.1 billion in February 2022, the second-highest February borrowing since monthly records began in 1993; this was £2.4 billion less than in February 2021 but still £12.8 billion more than in February 2020, before the coronavirus (COVID-19) pandemic.
Central government receipts were £71.9 billion in February 2022, £5.8 billion more than in February 2021, of which tax receipts were £53.7 billion, an increase of £4.2 billion.
Central government current (or day-to-day) expenditure was £73.2 billion in February 2022, £1.0 billion more than in February 2021, of which debt interest payments were £8.2 billion, an increase of £2.8 billion.
PSNB ex was £138.4 billion in the financial year-to-February 2022; this was the third-highest financial year-to-February borrowing since monthly records began in 1993 but less than half of the £290.9 billion borrowed in the same period last year.
Central government net cash requirement (excluding UK Asset Resolution Ltd and Network Rail) was £1.6 billion in February 2022, £4.8 billion less than in February 2021, bringing the total for the financial year-to-February 2022 to £110.5 billion.
Public sector net debt excluding public sector banks (PSND ex) was £2,326.8 billion at the end of February 2022 or around 94.7% of gross domestic product (GDP), maintaining a level not seen since the early 1960s.
Public sector net debt excluding public sector banks and the Bank of England (PSND ex BoE) was £2,005.3 billion at the end of February 2022 or around 81.6% of GDP.
4. Borrowing in February 2022
In February 2022, the public sector spent more than it received in taxes and other income, requiring it to borrow £13.1 billion.
Figure 2: The £13.1 billion borrowed in February 2022 was £2.4 billion less than that in February 2021 but still £12.8 billion more than before the coronavirus pandemic in February 2020
Public sector net borrowing excluding public sector banks, UK
Source: Office for National Statistics – Public sector finances
Download this chart Figure 2: The £13.1 billion borrowed in February 2022 was £2.4 billion less than that in February 2021 but still £12.8 billion more than before the coronavirus pandemic in February 2020
Image .csv .xls
February (£ billion) | Change on a year ago | |||
---|---|---|---|---|
2021 | 2022 | £ billion | % | |
Central Government | 12.5 | 9.7 | -2.8 | -22.4 |
Local Government | 4.6 | 4.6 | 0.1 | 1.6 |
Public Corporations | -0.2 | -0.2 | 0.1 | 27.6 |
Public Sector Pensions | 0.0 | 0.1 | 0.0 | 42.9 |
Sub-total: Public Sector ex BoE and Banks | 16.9 | 14.3 | -2.7 | -15.7 |
Bank of England | -1.4 | -1.1 | 0.3 | 20.2 |
Sub-total: Public Sector ex¹ | 15.5 | 13.1 | -2.4 | -15.3 |
Public Sector Banks | -0.8 | -0.8 | 0.0 | 0.1 |
Total: Public Sector | 14.7 | 12.3 | -2.4 | -16.1 |
Download this table Table 1: Public sector net borrowing
.xls .csvCentral government receipts
Central government receipts in February 2022 were estimated to have been £71.9 billion, a £5.8 billion increase compared with February 2021. Of these receipts, tax revenue increased by £4.2 billion to £53.7 billion.
February (£ billion) | Change on a year ago | |||
---|---|---|---|---|
2021 | 2022 | £ billion | % | |
Value Added Tax | 11.4 | 13.5 | 2.1 | 18.3 |
Fuel Duty | 1.6 | 2.0 | 0.5 | 29.0 |
Alcohol Duty | 0.8 | 0.8 | 0.0 | 2.5 |
Tobacco Duty | 0.9 | 0.8 | -0.1 | -5.8 |
Business Rates | 1.5 | 2.0 | 0.5 | 32.9 |
Stamp Duty (L&P)¹ | 0.8 | 1.3 | 0.5 | 54.9 |
Customs Duties | 0.3 | 0.4 | 0.1 | 24.3 |
Other taxes on production | 2.8 | 3.3 | 0.5 | 17.9 |
Pay As You Earn Income Tax | 15.9 | 18.0 | 2.1 | 13.3 |
Self-Assessed Income Tax | 4.3 | 3.1 | -1.2 | -27.2 |
Corporation Tax | 5.3 | 4.8 | -0.5 | -9.4 |
Other Taxes on Income & wealth² | 2.3 | 2.1 | -0.2 | -8.7 |
Other Taxes | 1.5 | 1.6 | 0.1 | 6.3 |
Compulsory social contributions | 13.0 | 14.5 | 1.6 | 12.2 |
Interest & Dividends receipts | 0.7 | 0.5 | -0.2 | -26.9 |
Other receipts | 3.0 | 3.2 | 0.2 | 6.0 |
Total Current Receipts | 66.1 | 71.9 | 5.8 | 8.8 |
Download this table Table 2: Central government current receipts
.xls .csvSelf-assessment Income Tax
In February 2022, self-assessment (SA) Income Tax receipts were £3.1 billion, £1.2 billion less than in February 2021. These payments bring the combined January and February 2021 receipts to £20.0 billion, a decrease of £0.8 billion compared with last year.
In light of the UK government’s coronavirus (COVID-19) deferral policy and payment schemes, this year it is advisable to look at the combined SA Income Tax receipts across the whole financial year. Currently, in the financial year-to-February 2022, SA Income Tax receipts were £36.6 billion, £6.5 billion more than in the same period last year.
Central government expenditure
Central government bodies spent £73.2 billion on current (day-to-day) expenditure in February 2022, £1.0 billion more than in February 2021.
February (£ billion) | Change on a year ago | |||
---|---|---|---|---|
2021 | 2022 | £ billion | % | |
Interest payments¹ | 5.4 | 8.2 | 2.8 | 52.7 |
National Insurance Fund Benefits | 8.5 | 8.8 | 0.3 | 2.9 |
Social Assistance | 9.8 | 9.8 | 0.0 | -0.4 |
Other Net social Benefits | 0.0 | 0.0 | 0.0 | - |
Procurement²,³ | 17.0 | 18.3 | 1.3 | 7.7 |
Pay | 13.0 | 14.2 | 1.1 | 8.7 |
Transfers to Local Government⁴ | 8.7 | 8.1 | -0.6 | -6.5 |
Contributions to EU⁵ | 0.0 | 0.0 | 0.0 | - |
Current transfers paid abroad - UK payments to EU⁶ | 0.0 | 0.9 | 0.9 | - |
Current transfers paid abroad - Other | 0.4 | 0.4 | -0.1 | 0.0 |
Subsidies - CJRS⁷ | 3.9 | 0.0 | -3.9 | -100.0 |
Subsidies - SEISS⁸ | 0.1 | 0.0 | -0.1 | -100.0 |
Subsidies - Other | 3.6 | 2.5 | -1.1 | -30.6 |
Other Expenditure | 1.8 | 2.0 | 0.2 | 11.1 |
Total Current Expenditure | 72.2 | 73.2 | 1.0 | 1.4 |
Depreciation | 2.6 | 2.8 | 0.2 | 8.9 |
Net Investment | 3.8 | 5.5 | 1.8 | 47.4 |
Total Expenditure | 78.6 | 81.6 | 3.0 | 3.8 |
Download this table Table 3: Central government expenditure
.xls .csvInterest payments on debt by central government
The recent high levels of debt interest payments are largely a result of movements in the Retail Prices Index (RPI) to which index-linked gilts are pegged. In February 2022, debt interest was £8.2 billion, the highest February on record, with the RPI uplift on index-linked gilts being £5.2 billion over and above the accrued coupon payments and other components of debt interest.
While any RPI uplift will impact on accrued expenditure (as used in the calculation of borrowing) it will not be wholly and immediately reflected in the central government net cash requirement. These movements are reflected in the government's liabilities, which will be realised as the existing stock of index-linked gilts is redeemed.
Support package for energy bills including council tax rebate scheme
On 3 February 2022, following Ofgem's announcement of a rise in the energy price cap, the UK government responded with a package of support for households.
Details of the formal classification decision on the recording of the Council Tax rebate scheme for England were presented in the Public Sector Classifications Guide published on 28 February 2022.
We concluded that the Council Tax rebate in England should be classified as a payable tax credit, specifically as a current transfer paid by central government to households.
This one-off payment will increase public sector net borrowing in April 2022.
Classifications assessments for other parts of the Energy Bills Rebate package, including the proposed £200 discount on autumn 2022 domestic energy bills, will be made when more information becomes available.
Bulb Energy Ltd
On 24 November 2021, the energy provider Bulb Energy Ltd was placed in a Special Administration Regime (SAR) by the UK government to ensure continued provision of essential services to its customers.
We will consider the impact of the SAR on the public sector finances and review its recording as part of our classifications work. In the meantime, payments made under the SAR are provisionally treated as expenditure under "other capital transfers", a component of net investment, as they happen.
Further information is available in our article Recent and upcoming changes to public sector finance statistics: December 2021.
Student loans
On 24 February 2022, the UK government announced new changes to the student finance system in England. Information about the future impact of these changes can be found in our article Recent and upcoming changes to public sector finance statistics: February 2022.
Nôl i'r tabl cynnwys5. Borrowing in the financial year-to-February 2022
The public sector borrowed £138.4 billion in the financial year-to-February 2022 (April 2021 to February 2022), £152.5 billion less than in the same period a year earlier and £25.9 billion less than the official Office for Budget Responsibility (OBR) forecast.
This was the third-highest financial year-to-February borrowing on record, being higher in the same period last year and during the economic downturn following the global financial crisis in the financial year-to-February 2010.
Figure 3: Official forecasts published by the Office for Budget Responsibility¹ suggest borrowing could reach £183.0 billion in financial year ending (FYE) 2022
Public sector net borrowing excluding public sector banks, UK, compared with the same period in FYE 2021
Source: Office for Budget Responsibility and Office for National Statistics – Public sector finances
Notes:
1. This chart uses the monthly borrowing profile published by OBR in December 2021.
Download this chart Figure 3: Official forecasts published by the Office for Budget Responsibility¹ suggest borrowing could reach £183.0 billion in financial year ending (FYE) 2022
Image .csv .xlsThe Office for Budget Responsibility will publish new forecast data on 23 March 2022. The OBR forecast data quoted in this release are taken from the October 2021 Economic and Fiscal Outlook and the associated December 2021 monthly profiles.
Financial year-to-date (£ billion)² | Change on a year ago | |||
---|---|---|---|---|
2020/21 | 2021/22 | £ billion | % | |
Central Government | 296.0 | 146.2 | -149.8 | -50.6 |
Local Government | -1.0 | 0.7 | 1.8 | 168.6 |
Public Corporations | -0.9 | -1.2 | -0.3 | -28.2 |
Public Sector Pensions | 0.5 | 0.8 | 0.2 | 42.4 |
Sub-total: Public Sector ex BoE and Banks | 294.6 | 146.5 | -148.1 | -50.3 |
Bank of England | -3.6 | -8.1 | -4.5 | -122.4 |
Sub-total: Public Sector ex¹ | 290.9 | 138.4 | -152.5 | -52.4 |
Public Sector Banks | -8.7 | -8.4 | 0.3 | 3.3 |
Total: Public Sector | 282.2 | 130.0 | -152.2 | -53.9 |
Download this table Table 4: Public sector net borrowing
.xls .csv
Figure 4: Financial year-to-February 2022 borrowing now half that of the same period a year earlier
Public sector net borrowing excluding public sector banks, UK, financial year ending (FYE) 1994 to the financial year-to-February 2022
Source: Office for National Statistics – Public sector finances
Notes:
- Financial year 2020 to 2021 represents FYE 2021 (April 2020 to March 2021).
Download this chart Figure 4: Financial year-to-February 2022 borrowing now half that of the same period a year earlier
Image .csv .xlsCurrent budget deficit
Public sector current budget deficit is the difference between current (day-to-day) expenditure and current receipts (mainly from taxes), having taken account of depreciation.
Financial year-to-date (£ billion)² | Change on a year ago | |||
---|---|---|---|---|
2020/21 | 2021/22 | £ billion | % | |
Central Government | 227.3 | 92.8 | -134.5 | -59.2 |
Local Government | 8.9 | 9.1 | 0.2 | 1.9 |
Public Corporations | -2.3 | -3.4 | -1.1 | -48.5 |
Public Sector Pensions | -0.4 | -0.9 | -0.5 | -114.6 |
Sub-total: Public Sector ex BoE and Banks | 233.5 | 97.6 | -135.9 | -58.2 |
Bank of England | -3.7 | -8.1 | -4.5 | -121.3 |
Sub-total: Public Sector ex¹ | 229.8 | 89.4 | -140.4 | -61.1 |
Public Sector Banks | -8.6 | -8.0 | 0.6 | 7.0 |
Total: Public Sector | 221.2 | 81.4 | -139.8 | -63.2 |
Download this table Table 5: Public sector current budget deficit
.xls .csv
Figure 5: Central government receipts in the financial year-to-February 2022 were £96.8 billion higher than in the same period last year
Central government current receipts, UK, the financial year-to-February 2022 compared with financial year ending (FYE) 2021
Source: Office for National Statistics – Public sector finances
Download this chart Figure 5: Central government receipts in the financial year-to-February 2022 were £96.8 billion higher than in the same period last year
Image .csv .xls
Financial year-to-date (£ billion)² | Change on a year ago | |||
---|---|---|---|---|
2020/21 | 2021/22 | £ billion | % | |
Value Added Tax | 126.4 | 150.2 | 23.8 | 18.8 |
Fuel Duty | 19.5 | 24.0 | 4.5 | 23.0 |
Alcohol Duty | 11.1 | 12.0 | 0.9 | 7.9 |
Tobacco Duty | 8.4 | 8.9 | 0.5 | 6.2 |
Business Rates | 16.3 | 21.1 | 4.8 | 29.4 |
Stamp Duty (L&P)¹ | 8.2 | 14.0 | 5.8 | 70.3 |
Customs Duties | 0.6 | 4.4 | 3.8 | 614.0 |
Other taxes on production | 32.7 | 35.1 | 2.4 | 7.3 |
Pay As You Earn Income Tax | 149.9 | 170.2 | 20.3 | 13.6 |
Self-Assessed Income Tax | 30.0 | 36.6 | 6.5 | 21.6 |
Corporation Tax | 49.5 | 56.8 | 7.3 | 14.8 |
Other Taxes on Income & wealth³ | 7.0 | 11.6 | 4.6 | 65.7 |
Other Taxes | 17.5 | 18.6 | 1.1 | 6.1 |
Compulsory social contributions | 130.3 | 143.9 | 13.6 | 10.4 |
Interest & Dividends receipts | 18.9 | 13.9 | -5.0 | -26.5 |
Other receipts | 32.3 | 34.2 | 1.9 | 5.8 |
Total Current Receipts | 658.7 | 755.5 | 96.8 | 14.7 |
Download this table Table 6: Central government current receipts
.xls .csv
Figure 6: Central government day-to-day spending in the financial year-to-February 2022 was £39.2 billion lower than in the same period last year
Central government current receipts, UK, the financial year-to-February 2022 compared with FYE 2021
Source: Office for National Statistics – Public sector finances
Download this chart Figure 6: Central government day-to-day spending in the financial year-to-February 2022 was £39.2 billion lower than in the same period last year
Image .csv .xls
Financial year-to-date (£ billion)⁹ | Change on a year ago | |||
---|---|---|---|---|
2020/21 | 2021/22 | £ billion | % | |
Interest payments¹ | 37.5 | 67.0 | 29.5 | 78.6 |
National Insurance Fund Benefits | 102.7 | 105.2 | 2.5 | 2.4 |
Social Assistance | 110.5 | 110.1 | -0.4 | -0.3 |
Other Net social Benefits | 2.5 | 1.1 | -1.4 | -56.0 |
Procurement²,³ | 178.1 | 179.6 | 1.5 | 0.9 |
Pay | 140.0 | 152.8 | 12.8 | 9.1 |
Transfers to Local Government⁴ | 133.4 | 118.1 | -15.3 | -11.5 |
Contributions to EU⁵ | 10.9 | 0.0 | -10.9 | -100.0 |
Current transfers paid abroad - UK payments to EU⁶ | 0.0 | 7.5 | 7.5 | 7.5 |
Current transfers paid abroad - Other | 7.3 | 4.8 | -2.4 | -34.2 |
Subsidies - CJRS⁷ | 54.5 | 8.5 | -46.0 | -84.3 |
Subsidies - SEISS⁸ | 19.7 | 8.3 | -11.4 | -57.7 |
Subsidies - Other | 36.7 | 30.5 | -6.2 | -16.9 |
Other Expenditure | 24.1 | 25.2 | 1.1 | 4.6 |
Total Current Expenditure | 857.9 | 818.7 | -39.2 | -4.6 |
Depreciation | 28.2 | 29.6 | 1.5 | 5.3 |
Net Investment | 68.6 | 53.3 | -15.3 | -22.3 |
Total Expenditure | 954.7 | 901.7 | -53.0 | -5.6 |
Download this table Table 7: Central government expenditure
.xls .csv6. Central government net cash requirement
The central government net cash requirement (CGNCR), excluding UK Asset Resolution Ltd and Network Rail, is the amount of cash needed immediately for the UK government to meet its obligations. To obtain cash, the UK government sells financial instruments, gilts or Treasury Bills.
The amount of cash required will be affected by changes in the timing of tax payments by individuals and businesses, but does not depend on forecast tax receipts in the same way as our accrued (or national accounts) based measures.
The CGNCR consequently contains the timeliest information and is less susceptible to revision than other statistics in this release. However, as for any cash measure, the CGNCR does not reflect the overall amount for which the government is liable or the point at which any liability is incurred - it only reflects when cash is received and spent.
February (billion) | Change on a year ago | |||
---|---|---|---|---|
2021 | 2022 | £ billion | % | |
Cash Receipts | ||||
HMRC Receipts: Total paid over¹ | 52.2 | 59.5 | 7.3 | 14.0 |
HMRC Receipts: Income tax² | 21.6 | 22.2 | 0.6 | 2.8 |
HMRC Receipts: NICs³ | 12.5 | 14.0 | 1.5 | 12.1 |
HMRC Receipts: VAT⁴ | 11.2 | 14.8 | 3.6 | 32.4 |
HMRC Receipts: Corporation tax⁵ | 2.4 | 2.4 | 0.0 | -0.2 |
Interest & Dividends Receipts | 0.5 | 0.4 | 0.0 | -5.5 |
Other Receipts⁶ | 3.1 | 2.3 | -0.8 | -24.2 |
Total Cash Receipts | 55.8 | 62.3 | 6.5 | 11.7 |
Cash Outlays | ||||
Interest Payments | 0.3 | 0.2 | -0.1 | -29.9 |
Net Acquisition of Company Securities⁷ | 0.0 | 0.0 | 0.0 | - |
Net Department Outlays: Total⁸ | 61.9 | 63.2 | 1.3 | 2.1 |
Net Department Outlays: CJRS⁹ | 3.9 | 0.0 | -3.9 | -100.0 |
Net Department Outlays: SEISS¹⁰ | 0.1 | 0.0 | -0.1 | -100.0 |
Total Cash Outlays | 62.2 | 63.4 | 1.2 | 1.9 |
Cash Balance | ||||
Own account Net Cash Requirement ex¹¹ | 6.4 | 1.1 | -5.3 | -82.8 |
NRAM and B&B | 0.1 | 0.0 | -0.1 | - |
Network Rail | -0.1 | -0.1 | 0.0 | - |
Own account Net Cash Requirement¹² | 6.4 | 1.0 | -5.4 | -84.0 |
Download this table Table 8: Central government net cash requirement on own account
.xls .csv
Financial year-to-date¹ | Change on a year ago | |||
---|---|---|---|---|
2020/21 | 2021/22 | £ billion | % | |
Cash Receipts | ||||
HMRC Receipts: Total paid over | 501.2 | 630.6 | 129.4 | 25.8 |
HMRC Receipts: Income tax | 187.4 | 218.5 | 31.1 | 16.6 |
HMRC Receipts: NICs | 130.8 | 142.9 | 12.1 | 9.2 |
HMRC Receipts: VAT | 88.7 | 150.1 | 61.3 | 69.1 |
HMRC Receipts: Corporation tax | 44.4 | 57.3 | 12.9 | 29.1 |
Interest & Dividends Receipts | 19.3 | 12.6 | -6.6 | -34.4 |
Other Receipts | 24.9 | 27.1 | 2.2 | 8.7 |
Total Cash Receipts | 545.4 | 670.3 | 124.9 | 22.9 |
Cash Outlays | ||||
Interest Payments | 38.8 | 30.2 | -8.6 | -22.1 |
Net Acquisition of Company Securities | 0.0 | -1.1 | -1.1 | - |
Net Department Outlays: Total | 820.3 | 747.2 | -73.1 | -8.9 |
Net Department Outlays: CJRS | 53.8 | 10.9 | -43.0 | -79.8 |
Net Department Outlays: SEISS | 19.7 | 8.3 | -11.4 | -57.7 |
Total Cash Outlays | 859.1 | 776.4 | -82.8 | -9.6 |
Cash Balance | ||||
Own account Net Cash Requirement ex | 313.7 | 106.1 | -207.7 | -66.2 |
NRAM and B&B | 0.1 | 0.0 | -0.1 | - |
Network Rail | -1.0 | -1.0 | 0.0 | - |
Own account Net Cash Requirement | 312.8 | 105.1 | -207.8 | -66.4 |
Download this table Table 9: Central government net cash requirement on own account
.xls .csv7. Debt
Public sector net debt represents the amount of money the public sector owes to private sector organisations (including overseas institutions).
When the government borrows, this normally adds to the debt total, but it is important to remember that reducing borrowing (the deficit) is not the same as reducing the debt.
Public sector net debt excluding public sector banks (PSND ex) was £2,326.8 billion at the end of February 2022, an increase of £197.3 billion compared with the same time the previous year.
The extra funding required by government over the course of the coronavirus (COVID-19) pandemic, combined with reduced cash receipts and a fall in gross domestic product (GDP), have all helped to push public sector net debt at the end of February 2022 to 94.7% of GDP, a level last seen in the early 1960s.
Figure 7: Debt has reached levels last seen in the early 1960s
Public sector net debt excluding public sector banks, percentage of gross domestic product (GDP), UK, financial year ending (FYE) 1921 to February 2022
Source: Office for Budget Responsibility and Office for National Statistics – Public sector finances
Notes:
- This chart uses historical data published in the Public finances databank 2021 to 2022.
Download this chart Figure 7: Debt has reached levels last seen in the early 1960s
Image .csv .xlsDebt is largely made up of gilts (or bonds) issued to investors by central government. Of the £2,032.9 billion gilts in circulation at the end of February 2022:
£1,530.8 billion are conventional gilts that pay a fixed interest rate
£502.1 billion are index-linked gilts that pay an interest rate pegged to the Retail Prices Index (RPI) and are recorded at their redemption value
These gilts are auctioned by the Debt Management Office (DMO), on behalf of central government in accordance with its financing remit.
The Bank of England's (BoE's) contribution to public sector net debt is largely a result of its quantitative easing activities through both its gilt and corporate bond holdings of the Asset Purchase Facility Fund (APF) and the loans made under Term Funding Schemes (TFS).
At the end of February 2022, the APF held £760.0 billion in conventional gilts, however, these are not recorded directly as a component of public sector net debt. Instead, we record the £115.0 billion difference between the £874.9 billion of reserves created to purchase gilts (or market value of the gilts) and the £760.0 billion face (or redemption) value of the gilts purchased. Table PSA9A in our Public sector finances tables 1 to 10: Appendix A, presents the impact of both APF and TFS as a part of BoE's contribution to public sector net debt.
Our public sector net debt excluding the public sector banks and the Bank of England (PSND ex BoE) measure removes the debt impact of these schemes along with the other transactions relating to the normal operations of the BoE. Currently standing at £2,005.3 billion at the end of February 2022 (or around 81.6% of GDP), PSND ex BoE is £321.5 billion (or 13.1 percentage points of GDP) less than PSND ex.
Figure 8: At the end of February 2022, the Bank of England contributed £321.5 billion to public sector net debt
Public sector net debt excluding public sector banks, UK, April 1994 to the end of February 2022
Source: Office for National Statistics – Public sector finances
Notes:
- Includes Asset Purchase Facility (APF) which includes the Term Funding Scheme (TFS) and TFS incentives for small and medium-sized enterprises (TFSME).
- Public sector net debt excluding public sector banks (PSND ex) is the combination of PSND ex Bank of England (BoE) plus the BoE’s contribution to PSND ex.
- Public sector net debt excluding public sector banks (PSND ex) shown at the end of each financial year (March), unless otherwise stated.
Download this chart Figure 8: At the end of February 2022, the Bank of England contributed £321.5 billion to public sector net debt
Image .csv .xlsPublic sector net financial liabilities
Public sector net financial liabilities excluding public sector banks (PSNFL ex) provide a more comprehensive measure of the public sector balance sheet, capturing a wider range of financial assets and liabilities than recorded in PSND ex, such as the assets held under the TFS, which fall outside the boundary of PSND ex.
PSNFL ex was £1,962.7 billion at the end of February 2022 (or around 79.9% of GDP), £364.1 billion (or 14.8 percentage points of GDP) less than PSND ex.
Table PSNFL 3, published as a part of Public sector finances tables 1 to 10: Appendix A, provides a reconciliation between the latest measure of PSND ex and PSNFL ex.
Nôl i'r tabl cynnwys8. Revisions
The data for the latest months of every release contain a degree of forecasts. Subsequently, these are replaced by improved forecasts, as further data are made available, and finally by outturn data.
Year-to-January² | Full financial year³ | |||||
---|---|---|---|---|---|---|
Previous | Latest | Change | Previous | Latest | Change | |
Central Government | 142.4 | 136.4 | -5.9 | 331.3 | 330.7 | -0.6 |
Local Government | 2.2 | -3.9 | -6.1 | -3.6 | -7.1 | -3.5 |
Public Corporations | 0.3 | -1.0 | -1.3 | -1.2 | -1.3 | 0.0 |
Public Sector Pensions | 0.7 | 0.7 | 0.0 | 0.6 | 0.6 | 0.0 |
Sub-total: Public Sector ex BoE and Banks | 145.5 | 132.3 | -13.2 | 327.0 | 322.9 | -4.1 |
Bank of England | -7.0 | -7.0 | 0.0 | -5.1 | -5.1 | 0.0 |
Sub-total: Public Sector ex¹ | 138.5 | 125.3 | -13.2 | 321.9 | 317.8 | -4.1 |
Public Sector Banks | -7.6 | -7.6 | 0.0 | -9.5 | -9.5 | 0.0 |
Total: Public Sector | 130.9 | 117.7 | -13.2 | 312.5 | 308.4 | -4.1 |
Download this table Table 10: Revisions to public sector net borrowing
.xls .csvRevisions to net borrowing in the financial year-to-January 2022
Since our last publication (22 February 2022), we have reduced our estimate of borrowing in the financial year-to-January 2022 by £13.2 billion, with sizable reductions to our previous estimates of both central and local government net borrowing.
Central government
We have reduced our previous estimate of central government net borrowing in the financial year-to-January 2022 by £5.9 billion.
We have increased our previous estimates of central government tax receipts by £4.8 billion, while our previous estimate of departmental expenditure on goods and services has reduced by £1.7 billion over the same ten-month period.
In addition to the regular revisions in the latest months, value added tax (VAT) receipts (on an accuals basis) have been adjusted to account for the distortionary impact of the VAT deferral policy on cash receipts. These improvements have resulted in smaller monthly revisions extending back to January 2021.
This month we have increased our estimate of net investment by £0.5 billion, with a £1.7 billion increase in our estimate of student loan write offs, as discussed in our latest Recent and Upcoming changes article, partially offset by a £1.0 billion reduction in gross capital formation.
Tables 11 and 12 detail the revisions to central government receipts and expenditure in the financial year-to-January 2022 since our last publication.
£ billion | ||||||
---|---|---|---|---|---|---|
Year-to-January³ | Full financial year⁴ | |||||
Previous | Latest | Change | Previous | Latest | Change | |
Value Added Tax | 132.8 | 136.7 | 3.9 | 137.2 | 137.7 | 0.4 |
Fuel Duty | 22.0 | 22.0 | 0.0 | 20.9 | 20.9 | 0.0 |
Alcohol Duty | 11.2 | 11.2 | 0.0 | 12.2 | 12.2 | 0.0 |
Tobacco Duty | 8.2 | 8.1 | 0.0 | 9.8 | 9.8 | 0.0 |
Business Rates | 19.4 | 19.1 | -0.3 | 16.9 | 16.9 | 0.0 |
Stamp Duty (L&P)¹ | 12.7 | 12.7 | 0.0 | 9.5 | 9.5 | 0.0 |
Customs Duties | 4.0 | 4.0 | 0.0 | 1.0 | 1.0 | 0.0 |
Other Taxes on Production | 31.5 | 31.8 | 0.3 | 36.0 | 36.1 | 0.1 |
Pay As You Earn Income Tax | 151.9 | 152.2 | 0.3 | 168.5 | 168.5 | 0.0 |
Self-Assessed Income Tax | 34.9 | 33.4 | -1.5 | 31.2 | 31.2 | 0.0 |
Corporation Tax | 51.9 | 52.0 | 0.2 | 54.3 | 54.7 | 0.4 |
Other Taxes on Income & wealth² | 7.6 | 9.7 | 2.1 | 7.6 | 7.6 | 0.0 |
Other Taxes | 17.0 | 17.0 | 0.0 | 19.3 | 19.3 | 0.0 |
Compulsory social contributions | 129.2 | 129.4 | 0.1 | 144.3 | 144.3 | 0.0 |
Interest & Dividends receipts | 13.6 | 13.4 | -0.2 | 19.5 | 19.5 | 0.0 |
Other receipts | 31.0 | 31.0 | 0.0 | 35.3 | 35.3 | 0.0 |
Total Current Receipts | 678.9 | 683.6 | 4.7 | 723.5 | 724.5 | 1.0 |
Download this table Table 11: Revisions to central government current receipts
.xls .csv
£ billion | ||||||
---|---|---|---|---|---|---|
Year-to-January⁹ | Full financial year¹⁰ | |||||
Previous | Latest | Change | Previous | Latest | Change | |
Interest payments¹ | 57.8 | 58.7 | 0.9 | 39.4 | 39.4 | 0.0 |
National Insurance Fund Benefits | 96.5 | 96.4 | -0.1 | 112.2 | 112.2 | 0.0 |
Social Assistance | 100.4 | 100.4 | -0.1 | 121.4 | 121.4 | 0.0 |
Other Net social Benefits | 1.2 | 1.1 | -0.1 | 2.2 | 2.3 | 0.1 |
Procurement²,³ | 163.2 | 161.3 | -1.8 | 199.7 | 199.7 | 0.0 |
Pay | 138.8 | 138.6 | -0.2 | 154.3 | 154.3 | 0.0 |
Transfers to Local Government⁴ | 110.3 | 110.0 | -0.3 | 149.8 | 149.8 | 0.0 |
Contributions to EU⁵ | 0.0 | 0.0 | 0.0 | 10.9 | 10.9 | 0.0 |
Current transfers paid abroad - UK payments to EU⁶ | 6.7 | 6.7 | 0.0 | 0.0 | 0.0 | 0.0 |
Current transfers paid abroad - Other | 4.3 | 4.3 | 0.0 | 8.1 | 8.1 | 0.0 |
Subsidies - CJRS⁷ | 8.5 | 8.5 | 0.0 | 58.1 | 58.1 | 0.0 |
Subsidies - SEISS⁸ | 8.3 | 8.3 | 0.0 | 19.7 | 19.7 | 0.0 |
Subsidies - Other | 28.2 | 28.0 | -0.2 | 39.8 | 40.1 | 0.3 |
Other Expenditure | 22.9 | 23.1 | 0.2 | 27.6 | 27.6 | 0.0 |
Total Current Expenditure | 747.2 | 745.4 | -1.7 | 943.2 | 943.6 | 0.4 |
Depreciation | 26.8 | 26.8 | 0.0 | 30.8 | 30.8 | 0.0 |
Net Investment | 47.2 | 47.8 | 0.5 | 80.8 | 80.8 | 0.0 |
Total Expenditure | 821.2 | 820.0 | -1.2 | 1,054.8 | 1,055.2 | 0.4 |
Download this table Table 12: Revisions to central government expenditure
.xls .csvLocal government
Since our last publication we have reduced our estimate of local government net borrowing in the financial year-to-January 2022 by £6.1 billion. These revisions are largely because of our improved estimates based on recently received in-year expenditure data and taking account of the delayed outturn data for the financial year ending (FYE) March 2021.
Based on this information we have reduced the overspend adjustment to England's forecast current expenditure on goods and services in FYE March 2022 by £2.5 billion to £3.5 billion.
Additionally, we have removed transport support expenditure relating to Transport for London (TfL) because on receiving outturn data for FYE March 2021, we established this expenditure component is already included in the public non-financial corporations sub-sector. We have also reduced our estimate of capital grants to the private sector.
Public corporations
We have reduced our previous estimate of public corporations net borrowing in the financial year-to-January 2022 by £1.3 billion, largely because of an increase to our previous estimate of gross operating surplus. We have increased the gross operating surplus of both the train operating companies and the Housing Revenue Account, where in both cases in-year data have replaced previous estimates.
Revisions to net borrowing in earlier financial years
Since our last publication (22 February 2022), we have reduced our estimate of borrowing in FYE March 2021 by £4.1 billion.
Central government
We have increased our previous estimates of central government tax receipts by £1.0 billion; most notably, both VAT receipts and corporation tax receipts have increased by £0.4 billion each.
Local government
In general, we receive our estimates of local government receipts and expenditure from both the Department for Levelling Up, Housing and Communities and the devolved administrations during the summer after the financial year to which they relate, enabling us to publish near-final estimates in the September publication and final estimates in December.
However, this year the impact of the coronavirus (COVID-19) pandemic has delayed this process, and therefore our estimates of local government borrowing have remained provisional for longer than is usual.
This month we have compiled an outturn-based estimate for the first time and as a result we have reduced our estimate of local government net borrowing in the FYE March 2021 by £3.5 billion.
Most notably, this includes the impact of removing transport support expenditure relating to Transport for London, which, using the recently published outturn data, we have now established is already included in the public non-financial corporations sub-sector.
Revisions to public sector net debt
This month we have increased our previous estimate of the level of debt at the end of January 2022 by £2.6 billion from that published on 22 February 2022. This was largely the result of an increase of £2.1 billion to our previous estimate of local government loan liabilities and a £0.7 billion increase to Network Rail's contribution to central government debt.
Nôl i'r tabl cynnwys9. Public sector finances data
Public sector finances tables 1 to 10: Appendix A
Dataset | Released 22 March 2022
The data underlying the public sector finances statistical bulletin are presented in the tables PSA 1 to 10.
Large impacts on public sector fiscal measures excluding banking groups: Appendix B
Dataset | Released 22 March 2022
A summary of the large events which impact on the current PSNB ex and PSND ex from the period May 2000 onwards.
Public sector finances revisions analysis on main fiscal aggregates: Appendix C
Dataset | Released 22 March 2022
Revisions analysis for central government receipts, expenditure, net borrowing and net cash requirement statistics for the UK over the last five years.
Public sector current receipts: Appendix D
Dataset | Released 22 March 2022
A breakdown of UK public sector income by latest month, financial year-to-date and full financial year, with comparisons with the same period in the previous financial year.
International Monetary Fund's Government Finance Statistics framework in the public sector finances: Appendix E
Dataset | Released 22 March 2022
Presents the balance sheet, statement of operations and statement of other economic flows for public sector compliant with the Government Finance Statistics Manual 2014: GFSM 2014 presentation.
Revisions to the first reported estimate of public sector net borrowing: Appendix F
Dataset | 22 March 2022
Summarises revisions to the first estimate of UK public sector borrowing (excluding public sector banks) by sub-sector. Revisions are shown at 6 and 12 months after year end.
10. Glossary
Public sector
In the UK, the public sector consists of six sub-sectors: central government, local government, public non-financial corporations, public sector pensions, the Bank of England (BoE) and public financial corporations (or public sector banks).
Public sector banks
Unless otherwise stated, the figures quoted in this bulletin exclude public sector banks, currently only the NatWest Group (formerly the Royal Bank of Scotland (RBS) Group).
Public sector current budget deficit
Public sector current budget deficit is the gap between current expenditure and current receipts on an accrued basis, having taken account of depreciation.
The current budget is in surplus when receipts are greater than expenditure.
Public sector current expenditure
Current expenditure measures reflect the cost of the public sector's day-to-day activities. For example, central government's provision of services and grants, payment of social benefits and the payment of the interest on its outstanding debt.
Public sector debt interest to revenue ratio
The debt interest to revenue ratio (DIR) represents the proportion of net interest paid (gross interest paid less interest received) by the public sector (excluding public sector banks), compared with the non-interest receipts it receives in a given period.
Public sector net borrowing
Public sector net borrowing excluding public sector banks (PSNB ex) measures the gap between revenue raised (current receipts) and total spending (current expenditure plus net investment (capital spending less capital receipts)). PSNB is often referred to by commentators as "the deficit".
Public sector net cash requirement
The public sector net cash requirement (PSNCR) represents the cash needed to be raised from the financial markets over a period of time to finance the government's activities.
This may be similar to borrowing (the deficit) for the same period and close but not identical to the changes in the level of net debt between two points in time.
Public sector net debt
Public sector net debt excluding public sector banks (PSND ex) represents the amount of money the public sector owes to private sector organisations (including overseas institutions) and is often referred to by commentators as "the national debt".
Public sector net investment
Public sector net investment is the sum of all capital spending, mainly net acquisitions of capital assets and capital grants, less the depreciation of the stock of capital assets.
Public sector net financial liabilities
Public sector net financial liabilities excluding public sector banks (PSNFL ex) is a comprehensive measure of the public sector balance sheet, capturing a wider range of financial assets and liabilities than recorded in PSND ex.
Total managed expenditure
Total managed expenditure (TME) covers all current and capital spending carried out by the public sector, including depreciation. This is equal to public sector current expenditure, plus public sector net investment, plus deprecation.
Nôl i'r tabl cynnwys11. Measuring the data
The independent Office for Budget Responsibility (OBR) is responsible for the production of official forecasts for the government. These forecasts are usually produced twice a year, in spring and autumn.
£ billion unless otherwise stated (not seasonally adjusted) | |||
---|---|---|---|
April to February outturn 2021-22 | Implied March expectation 2021-22 | Full financial year forecast¹ 2021-22 | |
Net Borrowing | 138.4 | 44.6 | 183.0 |
Net Debt | 2,326.8 | 42.5 | 2,369.3 |
Net Debt % of GDP² | 94.7 | 3.5 | 98.2 |
Download this table Table 13: Latest public sector finances outturn figures compared with official Office for Budget Responsibility forecasts for the financial year ending March 2022, UK
.xls .csvThe government has announced that the Spring 2022 forecast statement will be published on 23 March 2022, which will be accompanied by an updated set of official forecasts published by the OBR.
Nôl i'r tabl cynnwys12. Strengths and limitations
To supplement this release we publish an accompanying methodological guide and Quality and Methodology Information outlining the strengths, limitations, and appropriate uses of the public sector finance dataset.
Local government and public corporations
In recent years, planned local government expenditure initially reported in local authority budgets has been systematically higher than the final outturn expenditure reported in the audited accounts. We therefore include adjustments, usually to reduce the amounts reported at the budget stage.
For financial year ending (FYE) 2021 (April 2020 to March 2021) we have applied a £0.5 billion downward adjustment to current expenditure on benefits, to reflect the most recently available data for housing benefits.
For FYE 2022 we include:
a £2.5 billion downward adjustment to England's capital expenditure
a £0.5 billion downward adjustment to Scotland's capital expenditure
a £0.4 billion downward adjustment to Wales's capital expenditure
a £3.5 billion upward adjustment to England's current expenditure on goods and services
We apply a further £2.1 billion downward adjustment to budget forecast current expenditure on benefits in FYE 2022, to reflect the most recently available data for housing benefits.
Public corporations' data in the most recent periods are initial estimates, largely based on the OBR Economic and fiscal outlook (EFO) - October 2021, with adjustments being applied as needed.
Nôl i'r tabl cynnwys