Analysis

National
Debt

UK
Deficit

Current
Spending

Spending
Analysis

UK
Taxes

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What is the UK National Deficit?

For the fiscal year ending in March 2027:
The “current budget deficit*” is estimated to be £33.9 billion.

* Defined by Office of Budget Responsibility as (current expenditure - current receipts - depreciation).

UK National Deficit Analysis

This page shows the current trends in UK national deficit. Also see charts on UK debt history.

National
Deficit

Total

Recent UK Current Budget Deficits

Chart D.01t: Recent UK Deficits

Chart D.02t: Recent UK Deficits as Pct GDP

In 2005 the UK “current budget deficit” was less that £20 billion. But in the 2009 recession the budget deficit skyrocketed to £103 billion in 2010. In the recovery the deficit steadily declined down to zero in 2019, before shooting up over £240 billion in the COVID year of 2021. At the end of March 2026 the “current budget deficit” was £50.90 billion.

In terms of Gross Domestic Product the UK “current budget deficit” was about 0.6 percent GDP in 2007 and 2008, ballooning to 6.9 percent of GDP in 2010. In the 2010s the deficit steadily declined to zero in 2019, before exceeding 11 percent GDP after COVID in 2021. At the end of March 2026 the “current budget deficit” was 1.7 percent of GDP.

UK Deficit Since World War II

Chart D.03t: UK Deficits since 1947

The UK deficit started out in 1947 at 3 percent of GDP and then immediately went into surplus, as the Attlee government worked to reduce the huge debt racked up in World War II. The surplus peaked at 6.3 percent of GDP in 1950 and then declined to a surplus of 0.9 percent GDP in 1961.

But then surpluses started to climb again reaching 7.6 percent GDP in 1970 during the Wilson government before declining sharply. The UK scored a deficit of 0.1 percent GDP in 1975 for the first time in nearly 20 years.

The UK ran a budget deficit till the end of the Thatcher years, with a peak of 2.2 percent of GDP in 1981. In the mid to late 1980s deficits declined, and went into surplus in 1989 at 1.9 percent GDP.

Deficits returned in the Major years and the ERM crisis, reaching 5.7 percent GDP in 1994. But then the deficit came down and went into surplus, maxing out at a surplus of 2.3 percent GDP in 2001.

Moderate deficits were the rule in the mid 2000s Blair years. But the deficit rocketed upwards to 6.9 percent in 2010, declined to zero at the end of the 2010s before exploding to 11 percent after COVID.