US EditionUK borrowing jumped in February before Iran war risks to budget
Public sector borrowing rose to £14.3 billion in February, 18% higher than last year, driven by debt interest timing, increased spending, and Iran conflict-induced borrowing costs.
- On March 20 in Manchester, Britain's government reported public sector net borrowing of 14.3 billion pounds in February, much higher than economists' forecasts of about an 8.5–8.8 billion deficit.
- Rising public spending and interest timing meant the Office for National Statistics said debt interest payments rose to £13 billion in February, up from £7.5 billion a year earlier, driving an 18% borrowing increase.
- The ONS revision showed January's surplus increased to 31.9 billion from 30.3 billion, while short-dated British gilts plunged after Bank of England warnings and energy attacks.
- Finance minister Rachel Reeves now faces demands to support households facing higher energy and motor fuel costs later this year, while borrowing for the 2025/26 financial year stands at £125.9 billion.
- The Office for Budget Responsibility last month forecast borrowing of 132.7 billion pounds, with Ruth Gregory warning 'We doubt there is scope for a large-scale fiscal support package like that seen in 2022'.
8 Articles
8 Articles
UK borrowing jumped in February before Iran war risks to budget
Britain's government borrowed a lot more than expected in February, in part due to the erratic timing of debt interest payments, before the shock of the Iran war pushed up borrowing costs and led to calls for more public spending.
UK borrowing costs jump to 'second highest on record' as Rachel Reeves faces 'challenging environment'
Public sector borrowing came in at £14.3billion in February 2026, up £2.2billion from the same time the year before, according to the latest figures from the Office for National Statistics (ONS).This is also the second-highest February borrowing figure on record, just below the 2021 pandemic-era figure, in a blow to Chancellor Rachel Reeves's plans for the economy.Notably, central Government debt interest costs primarily fueled February 2026's f…
In the UK, this could be described as something of a shock. The last such instance occurred during the global financial crisis, at the end of July 2008. For a country with debt close to its GDP, the observed increase in interest rates is a serious problem. Even more serious than for Poland.
Coverage Details
Bias Distribution
- 60% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
