Source: Sharecast
Borrowing - the difference between total public sector spending and income - came in at £23.3bn, up £5.4bn on May 2025 and £5.6bn more than the £17.7bn forecast by the Office for Budget Responsibility.
Borrowing in the financial year to May 2026 was £46.3bn. This was £8.9bn more than in the same period a year earlier, and £7.7bn more than the £38.6bn forecast by the OBR.
The ONS said central government debt interest payable was £11.7bn last month, up £4.1bn on May 2025 and the highest in any May on record.
Tom Davies, senior statistician at the ONS, said: "Borrowing in the first two months of the financial year was nearly £9 billion higher than the same period of 2025.
"Spending on debt interest, public services, investment and benefits all increased in May 2026, compared with last May, more than outweighing higher tax receipts."
Nabil Taleb, economist at PwC UK, said: "This month’s borrowing figures offer little reassurance, and the public finances are unlikely to feel much relief while inflation risks remain live. With energy-driven price pressures still a risk, the Bank of England has so far kept the Bank Rate at 3.75%, underlining the prospect of borrowing costs staying higher for longer.
"That matters because elevated rates feed through into debt-servicing pressures - which are already high - limiting the Chancellor’s room for manoeuvre while financing conditions remain tight. In that sense, the challenge is not just the level of monthly borrowing, but how quickly those financing conditions genuinely ease."