How much money does the UK government borrow, and why does it matter?

The UK government borrows to fund day-to-day spending as well as long-term infrastructure projects.

July 21, 2026

The UK government typically spends more than it collects through taxation. To bridge this financial gap, it resorts to borrowing, which must then be repaid along with interest.

The majority of the government'

interest rates public finances economic policy uk government borrowing national debt government bonds fiscal rules taxation