UK budget deficit surges to £14.3 billion in February

The United Kingdom recorded a budget deficit of £14.3 billion in February, significantly higher than analysts’ forecasts of £8.5 billion and £2.2 billion more than in the same month last year, according to data released by the UK Office for National Statistics (ONS).

Government revenues rose by £8.6 billion year-on-year to reach £104.7 billion. However, public spending increased at a faster pace, climbing by £10.8 billion to £119 billion. The widening gap between income and expenditure contributed to the larger-than-expected deficit, Caliber.Az reports via foreign media. 

A key factor behind the increase in spending was higher debt servicing costs. The government paid an additional £5.5 billion in interest on its national debt compared to February 2025, reflecting the ongoing burden of elevated borrowing costs.

The February shortfall marks the second-largest monthly deficit in UK history, surpassed only by figures recorded during the COVID-19 pandemic in 2021.

Public sector debt remains historically high, standing at 93.1 percent of gross domestic product (GDP). This level is close to peaks last seen in the early 1960s, highlighting continued pressure on the country’s public finances.

By Sabina Mammadli