Year-on-year increase in public sector borrowing

And, despite it being the fourth-highest financial year borrowing rate since records began back in 1946, it was £13.2bn less than forecast by the Office for Budget Responsibility. The public sector budget deficit for 2022/23, meanwhile, is estimated to be at £87.4bn – £15.8bn more than in the previous financial year. 

As for public sector debt, this stood at £2.5tn at the end of March 2023, or around 99.6% of GDP, with the debt-to-GDP ratio at levels last seen in the early 1960s.  

Looking at the month-by-month figures, public sector net borrowing hit £21.5bn – £16.3bn more than in March 2022 – with this being the second-highest March borrowing rate since monthly records began back in 1993.  

Additionally, public sector receipts were at £88.8bn – £2bn more than during the same month the previous year, although this income was unable to offset the £18.3bn rise in total public sector spending, which reached £110.3bn in March 2023.  

March 2023 also saw the central government receive £81bn in taxes and other income, £1.6bn more than in March 2022. However, over the same period spending increased by £15.1bn to £104.7bn, in part reflecting the cost of the combined energy support schemes provided to households and businesses, estimated at around £8bn.

As a result of this, central government borrowed £23.7bn in March 2023 – more than double the £10.2bn borrowed during the same period the previous year.