According to the provisional public sector finance numbers for March 2025 released by the Office for National Statistics (ONS) on 23 April, public sector net debt was £2,814bn on 31 March 2025. This comprised gross debt of £3,198bn, less cash and other liquid financial assets of £384bn.

Our chart this week illustrates how the net amount the nation owes to its creditors has changed over the last five years, starting with net debt of £1,816bn on 31 March 2020. Debt repayments of £541bn were financed by replacement borrowing of £541bn, followed by borrowing of £847bn to fund deficits over the five years (£315bn in 2020/21, £122bn in 2021/22, £127bn in 2022/23, £131bn in 2023/24 and a provisional £152bn in 2024/25) and borrowing for other reasons of £151bn (principally to fund government lending and working capital requirements). The result is an increase of £998bn to reach net debt of £2,814bn on 31 March 2025.

At just short of a trillion pounds, this is the largest amount ever borrowed by the UK government in a five-year period, with only the £0.8tn (£799bn) borrowed over the five years to March 2013 following the financial crisis coming close – when net debt went from £567bn on 31 March 2008 to £1,366bn on 31 March 2013. 

The pandemic and the subsequent energy and cost-of-living crises are, of course, the main drivers behind the need to borrow so much in such a short time, but the worry is that annual borrowing levels are not coming down as quickly as might have been hoped (or budgeted).

Either way, the consequences of building up so much debt will be with us for a long time to come, with debt interest squeezing the amounts available to pay for public services and the tax burden approaching an all-time high, just as demographic change is reducing the proportion of working-age adults, compared with those in retirement.

Of course, as the latest numbers are provisional and the historical ones are often subject to revision, it would only take a couple of relatively small adjustments to the starting or closing debt balances to turn this from just under a trillion pounds to just over a trillion. 

Perhaps a reminder that while a couple of billion pounds is a huge sum of money to you or me (or even to many billionaires), in terms of the UK public finances it is not much more than a rounding error.