“After another year with little growth, public sector net debt now stands at £2,814bn - equivalent to approximately £95,300 per household in the UK. This is £3,500 per household more than a year ago, and well on its way to reach £100,000 per household within the next couple of years. 

“Today’s numbers show that the reality is much worse than the £22bn ‘black hole’ in the 2024/25 budget identified by the incoming government last summer, with higher debt interest and weaker tax receipts adding to the Chancellor’s financial headaches. The provisional deficit for the year ended 31 March 2025 reported by the ONS this morning of £152bn was £78bn or more than twice the £74bn originally budgeted by the previous government just over a year ago.  

“The Chancellor will be relieved that the 2024/25 financial year is now firmly behind her. In theory, the large tax rises coming into force this month should help refill the public purse to pay for the government’s missions to grow the economy and reform and improve public services. Unfortunately, the public finances remain vulnerable to the economic headwinds caused by those tax rises that, together with a global trade war, are likely to put significant pressure on the Chancellor as she seeks to stick to her fiscal rules in the current financial year.” 

ENDS

Notes to editors: 

1. The provisional deficit for the 2024/25 financial year ended 31 March 2025 of £152bn was £21bn more than the £131bn deficit incurred in 2023/24. It was £15bn more than the OBR’s estimate of £137bn at the Spring Statement 2025 and £78bn more than the £74bn originally budgeted last March in the Spring Budget 2024.
2. The provisional deficit for the month of March 2025 of £16.4bn was £2.8bn more than the £13.6bn in the same month a year previously and £3.4bn more than the £13.0bn that was originally budgeted.
3. Public sector net debt has been provisionally reported to be £2,814bn, £128bn more than at the start of the financial year. This is £1bn higher than the £2,813bn estimated by the OBR at the Spring Statement 2025 and £21bn higher than the £2,793bn originally budgeted.
4. Public sector net debt per household was approximately £95,300 based on an estimated 29.5m households in the UK on 31 March 2025, £3,500 higher than a year previously.
5. Public sector net debt per person was approximately £40,400 based on an estimated UK population of 69.7m on 31 March 2025, £1,500 higher than a year previously.