2021.10.2106:18:00UTC+00UK Budget Logs Second Biggest September Deficit On Record

The UK budget registered its second biggest deficit for the month of September since the records began in 1993, the Office for National Statistics said on Thursday.

Public sector net borrowing excluding public sector banks was GBP 21.8 billion in September, the second-highest September borrowing since monthly records began in 1993. This was GBP 7.0 billion less than in September 2020.

In the financial year-to-September 2021, PSNB excluding banks totaled GBP 108.1 billion 2021. This was also the second largest financial year-to-September borrowing on record and was GBP 101.2 billion less than in the same period last year.

Further, data showed that public sector net debt excluding public sector banks came in at GBP 2.218 trillion at the end of September, or around 95.5 percent of gross domestic product, the highest ratio since the 98.3 percent recorded in March 1963.

The ONS said the extra funding required by government coronavirus support schemes, combined with reduced cash receipts and a fall in GDP, have all helped to push public sector net debt to the current level.

In September, central government receipts grew 11 percent annually and expenditure dropped 1.6 percent.