UK government borrowing exceeds forecasts in August ahead of budget

The UK government borrowed £18 billion in August 2025, far more than expected. Official forecasters had predicted only £12.5 billion, so the gap was £5.5 billion. It was the highest August borrowing figure in five years.

So far this financial year, the government has borrowed £83.8 billion in total. This is already £11.4 billion above the full-year forecast made in March.

The news pushed the pound down slightly against the dollar. Bank shares also fell, with NatWest dropping 2.5 percent.