1. Main points
UK general government gross debt was £2,224.5 billion at the end of financial year ending March 2021, equivalent to 106.0% of gross domestic product (GDP).
UK general government gross debt was 13.1 percentage points above the average of the 27 European Union (EU) member states at the same point in time.
UK general government deficit (or net borrowing) was £304.0 billion in the financial year ending March 2021, equivalent to 14.5% of GDP.
UK general government deficit was 0.6 percentage points above the average of the 27 EU member states in the same period.
!
In this release, we present statistics for the general government sector. These are used for international comparisons and include central and local government only. The public sector finances release has a wider scope, adding data for other public sector bodies, such as public corporations and the Bank of England.
2. Government debt
The extra funding required to support government coronavirus (COVID- 19) support schemes combined with reduced cash receipts and a fall in gross domestic product (GDP) have all helped push general government gross debt as a ratio of GDP to more than 100% of GDP. This is around two and a half times higher than that at the end of the financial year ending March 2008, the year of the global financial crisis
Figure 1: Debt as a percentage of GDP has nearly doubled since the early seventies
General government gross debt as a percentage of gross domestic product (GDP), UK, March 1975 to March 2021
Source: Office for National Statistics - UK government debt and deficit
Notes:
Financial year represents the period of April to March.
Debt is recorded as at the end of March of each financial year.
GDP – gross domestic product.
Download this chart Figure 1: Debt as a percentage of GDP has nearly doubled since the early seventies
Image.csv.xls
| £ billion¹ | ||||||||
|---|---|---|---|---|---|---|---|---|
| Quarter | 2019 Q2 | 2019 Q3 | 2019 Q4 | 2020 Q1 | 2020 Q2 | 2020 Q3 | 2020 Q4 | 2021 Q1 |
| Debt² | 1,849.3 | 1,848.5 | 1,891.1 | 1,876.3 | 2070.1 | 2,140.0 | 2,206.1 | 2,224.5 |
| as % GDP³ | 84.9 | 84.1 | 85.3 | 84.4 | 96.2 | 100.4 | 104.5 | 106.0 |
Download this table Table 1: General government gross debt
.xls.csv
Figure 2: Debt as a percentage of GDP has grown substantially in recent quarters
General government gross debt as a percentage of GDP, UK, at the end of Quarter 1 (March) 2018 to the end of Quarter 1 (March) 2021
Source: Office for National Statistics - UK government debt and deficit
Notes:
GDP – gross domestic product.
The ratio is recorded as at the end of each calendar quarter.
Download this chart Figure 2: Debt as a percentage of GDP has grown substantially in recent quarters
Image.csv.xls
Comparison with the European Union member states
Figure 3: Government debt for the UK as a percentage of GDP is currently 13.1 percentage points above the EU average
General government gross debt as a percentage of GDP, UK and EU member states, at the end of Quarter 1 (March) 2021
Source: Office for National Statistics - UK government debt and deficit, Eurostat
Notes:
GDP – Gross Domestic Product.
EU 27 - Average of the 27 EU member states.
Download this chart Figure 3: Government debt for the UK as a percentage of GDP is currently 13.1 percentage points above the EU average
Image.csv.xls
Figure 4: UK debt has risen more than the EU average during the pandemic
General government debt growth change in percentage points, UK and EU member states, at the end of Quarter 1 (March) 2021 compared with the end of Quarter 4 (December) 2019
Source: Office for National Statistics - UK government debt and deficit, Eurostat
Notes:
GDP – Gross Domestic Product.
EU 27 - Average of the 27 EU member states.
Download this chart Figure 4: UK debt has risen more than the EU average during the pandemic
Image.csv.xls
Comparison with Group of Seven (G7) member states
Figure 5: UK general government gross debt as a percentage of GDP at the end of December 2020 was lower than the G7 average
General government gross debt as a percentage of GDP, at the end of December 2020, UK, EU and G7 member states
Source: Office for National Statistics, IMF World Economic Outlook, April 2021
Notes:
GDP – Gross Domestic Product.
EU 27 – Average of the 27 EU member states.
Debt is recorded as at the end of December of each calendar year.
The latest available data for all G7 member states.
Download this chart Figure 5: UK general government gross debt as a percentage of GDP at the end of December 2020 was lower than the G7 average
Image.csv.xls
An international comparison of general government gross debt as a percentage of GDP can be found in general government gross debt and deficit as percentage of GDP – Annex A.
Back to table of contents3. Government deficit
The latest deficit (or net borrowing) figures reflect the ongoing unprecedented impact of the coronavirus (COVID-19) pandemic and the UK government’s support for individuals and businesses.
Figure 6: Deficit as a percentage of GDP for the financial year ending 2021 was 11.7 percentage points higher than in the same period the previous year
General government deficit (net borrowing) as a percentage of GDP, UK, financial years 1973 to 2021
Source: Office for National Statistics - UK government debt and deficit
Notes:
GDP – gross domestic product.
Financial year represents the period of April to March.
Download this chart Figure 6: Deficit as a percentage of GDP for the financial year ending 2021 was 11.7 percentage points higher than in the same period the previous year
Image.csv.xls
| £ billion¹ | ||||||||
|---|---|---|---|---|---|---|---|---|
| Quarter | 2019 Q2 | 2019 Q3 | 2019 Q4 | 2020 Q1 | 2020 Q2 | 2020 Q3 | 2020 Q4 | 2021 Q1 |
| Deficit | 23.0 | 14.9 | 22.9 | 2.2 | 118.9 | 74.1 | 63.3 | 47.6 |
| as % GDP² | 4.2 | 2.7 | 4.0 | 0.4 | 25.0 | 14.0 | 11.5 | 8.8 |
Download this table Table 2: General government deficit
.xls.csv
In Quarter 1 (Jan to Mar) 2021, central government bodies spent £233.6 billion, £46.0 billion more than in the same quarter a year earlier.
This increase was in part because of central government paying £15.2 billion more in subsidies to businesses and households in Quarter 1 2021 than in the same quarter a year earlier. This included the additional £12.4 billion cost of the Coronavirus Job Retention Scheme (CJRS) and Self Employment Income Support Scheme (SEISS) during this period.
Central government expenditure on goods and services was £19.5 billion higher in Quarter 1 2021 than the same period a year earlier. This was partly caused by increased expenditure by the Department of Health and Social Care, devolved administrations and other departments in response to the coronavirus pandemic.
In the same period, and using provisional data, central government tax revenue was £162.4 billion, £4.4 billion more than in the same quarter a year earlier.
Local government paid £4.4 billion more in subsidies to businesses and households in Quarter 1 2021 than in the same quarter a year earlier. This included subsidies paid from the Coronavirus Small Business Grant Fund.
Figure 7: Deficit as a percentage of GDP is particularly high in the recent four quarters
General government deficit (net borrowing) as a percentage of GDP, UK, Quarter 1 (Jan to Mar) 2018 to Quarter 1 (Jan to Mar) 2021
Source: Office for National Statistics - UK government debt and deficit
Notes:
- GDP – Gross Domestic Product.
Download this chart Figure 7: Deficit as a percentage of GDP is particularly high in the recent four quarters
Image.csv.xls
Comparison with the European Union member states
Figure 8: Government deficit for the UK as a percentage of GDP in Quarter 1 2021 is 0.6 percentage points higher than the EU average
General government deficit (net borrowing) as a percentage of GDP, UK and EU member states, Quarter 1 (Jan to Mar) 2021
Source: Office for National Statistics - UK government and deficit, Eurostat
Notes:
GDP – Gross Domestic Product.
EU 27 - Average of the 27 EU member states.
Download this chart Figure 8: Government deficit for the UK as a percentage of GDP in Quarter 1 2021 is 0.6 percentage points higher than the EU average
Image.csv.xls
Figure 9: Government deficit for the UK has risen less than the EU average during the pandemic
Change in general government deficit (net borrowing) in percentage points, UK and EU member states, Quarter 1 (Jan to Mar) 2021 compared to Quarter 4 (Oct to Dec) 2019
Source: Office for National Statistics - UK Government debt and deficit, Eurostat
Notes:
GDP – Gross Domestic Product.
EU 27 - Average of the 27 EU member states.
Download this chart Figure 9: Government deficit for the UK has risen less than the EU average during the pandemic
Image.csv.xls
Comparison with Group of Seven (G7) member states
Figure 10: Government deficit for the UK as a percentage of GDP in 2020 was 1.0% lower than the G7 average
General government gross deficit as a percentage of GDP, 2020 calendar year, UK, EU and G7 member states
Source: Office for National Statistics, IMF World Economic Outlook, April 2021
Notes:
GDP – Gross Domestic Product.
Calendar year represents the period of January to December.
EU 27 – Average of the 27 EU member states.
Group of Seven (G7) – Average of the Group of Seven member states.
The latest available data for all G7 member states.
Download this chart Figure 10: Government deficit for the UK as a percentage of GDP in 2020 was 1.0% lower than the G7 average
Image.csv.xls
An international comparison of general government deficit as a percentage of GDP can be found in general government gross debt and deficit as percentage of GDP – Annex A.
Back to table of contents4. UK government debt and deficit data
Government deficit and debt return
Dataset | Released 30 July 2021
Summary, reconciliation, and revisions information on UK government deficit and debt figures by calendar and financial year since the last publication.
General government main aggregates: ESA Table 2
Dataset | Released 30 July 2021
Breakdown of general government expenditure (both current and capital) and general government revenue.
General government quarterly non-financial accounts: ESA Table 25
Dataset | Released 30 July 2021
Breakdown of general government expenditure (both current and capital) and general government revenue.
General government quarterly financial accounts: ESA Table 27
Dataset | Released 30 July 2021
Complete set of quarterly financial accounts of the general government sector and its sub-sectors, compiled according to the ESA.
General government quarterly debt (Maastricht debt): ESA Table 28
Dataset | Released 30 July 2021
Summary of government debt on a quarterly basis, for general government and its sub-sectors.
General government gross debt and deficit as percentage of GDP: Annex A
Dataset | Released 30 July 2021
International comparison of general government gross debt and deficit as percentage of GDP.
5. Glossary
General government
UK general government consists of two sub-sectors: central government and local government.
Debt
Debt represents the cumulative amount the general government sector owes to organisations in other UK sectors and overseas institutions, which is largely a result of government financial liabilities on the bonds (gilts) and Treasury bills it has issued.
Deficit
Deficit (or net borrowing) measures the gap between total revenue and total spending. A positive value indicates borrowing while a negative value indicates a surplus
Back to table of contents6. Measuring the data
The UK Government debt and deficit statistical bulletin is published quarterly in January, April, July and October each year. This is to coincide with when EU member states are required to report on their debt and deficit to the European Commission.
Gross domestic product (GDP) at market prices used to calculate government gross debt and deficit as a ratio of GDP are consistent with those published in the GDP quarterly national accounts, UK: January to March 2021 on 30 June 2021.
The impact of the coronavirus (COVID-19) support schemes on government finance statistics
In total, at least 50 schemes have been announced by the UK government and the devolved administrations to support individuals and businesses during the pandemic.
Recent and upcoming changes to public sector finance statistics: May 2021 (published 22 June 2021) describes how the most significant coronavirus (COVID-19) support schemes are, or will be recorded in the UK’s government finance statistics. It also provides information about methodological changes and presents areas for future development.
Revisions since previous publication
The revisions between releases are primarily the result of improved departmental (and other government bodies) data replacing previous estimates.
The Government deficit and debt return table presents the revisions to our main aggregates since the last publication of the UK government debt and deficit return (published on 30 April 2021). These revisions are consistent with revisions incorporated within the May 2021 Public sector finances statistical bulletin.
The public sector finances revisions policy provides information on when users of the statistics published in the Public sector finances and UK government debt and deficit statistical bulletins should expect to see methodological and data-related revisions.
Back to table of contents7. Strengths and limitations
The public sector finances methodological guide provides comprehensive contextual and methodological information concerning the monthly Public sector finances statistical bulletin and related publications, including this release.
The guide sets out the conceptual and fiscal policy context, identifies the main fiscal measures, and explains how these are derived and interrelated. Additionally, it details the data sources.
Information on strengths, limitations, appropriate uses, and how the data were created is available in the Public sector finances QMI.
Comparability with EU member states
This release is fully consistent with the latest data transmission of government debt and deficit submitted by each of the 27 EU member states to the European Commission on 30 June 2021.
Comparability with Group of Seven (G7) member states
The general government debt and deficit figures used in the comparison of G7 member states are fully consistent with those published in the International Monetary Fund’s World Economic Outlook on 6 April 2021.
Comparability with monthly public sector finances
The general government debt and deficit figures published in this statistical bulletin (for the time period 1997 onwards) are fully consistent with those published in the Public sector finances, UK: May 2021 statistical bulletin on 22 June 2021.
There are two main differences between the headline debt and deficit measures published in the public sector finances and those published in this bulletin.
Firstly, this bulletin includes only the debt and deficit of central and local government bodies. The public sector finances’ measures also include the debt and deficit of other public sector bodies, including public non-financial corporations and the Bank of England.
Secondly, this bulletin reports gross debt, while the focus of the public sector finances is net debt. Gross debt represents only the financial liabilities (debt securities, loans and deposits) of central and local government, while net debt deducts any liquid assets (official reserve assets and other cash or cash-like assets) from these financial liabilities.
Back to table of contents8. Related links
Public sector finances, UK: May 2021
Bulletin | Released 22 June 2021
How the relationship between UK public sector monthly income and expenditure leads to changes in deficit and debt.
Public sector finances borrowing by sub-sector
Dataset | Released 22 June 2021
Public sector finances analytical tables (PSAT) showing transactions related to borrowing by sub-sector. Total Managed Expenditure (TME) is also provided.
Recent and upcoming changes to public sector finance statistics articles
Article | Released 22 June 2021
Areas for future development in the public sector finance statistics.
The debt and deficit of the UK public sector explained
Article | Released 16 March 2016
A detailed explanation of the debt and deficit of the UK public sector.
Eurostat Government Finance Statistics – quarterly data: 2021 Q1
Bulletin | Released July 22 2021
The latest debt and deficit quarterly statistics of the 27 European countries which make up the European Union.
International Monetary Fund - World Economic Outlook: April 2021
Report | Released April 6 2021
The latest report from the International Monetary Fund (IMF) containing key indicators of its member countries.
