UK public sector net debt bigger than economy for first time in 60 years

Debt tops £2.5 trillion, more than 100 per cent of GDP, for the first time since 1961

According to the UK's Office for National Statistics, public sector debt now exceeds GDP. EPA

A closely watched economic ratio on public sector borrowing has passed through a threshold not seen for 60 years, official figures showed on Wednesday.

Public sector net debt at the end of May was £2,567.2 billion ($3,265.6 billion) and provisionally estimated at 100.1 per cent of gross domestic product, according to the Office for National Statistics (ONS).

It means that public sector debt is now larger than the size of the UK economy.

'Highly provisional'

This is the first time debt has exceeded GDP since 1961, although it was temporarily recorded as passing that threshold during the Covid pandemic before being revised lower.

The ONS pointed out that Wednesday's net debt figure, which is expressed as a percentage of GDP, should be "treated as highly provisional and likely to be revised in future publications".

The ONS said government borrowing in May was £20 billion, £10.7 billion more than in the same month in the previous year and the second-highest May borrowing since monthly records began in 1993.