What is the deficit?
The deficit is the gap between what the government spends and what it raises in taxes in one year. The government covers it by borrowing. In the financial year to March 2026, the UK borrowed £134.3 billion, about 4.4% of GDP. Each year's deficit adds to the national debt.
In the UK the deficit is officially called public sector net borrowing. The ONS publishes it every month. In the first five months of the 2026 to 2027 financial year, borrowing was £77.3 billion. That was slightly lower than a year before, but £8.1 billion more than the Office for Budget Responsibility (OBR) had forecast. A deficit is normal for most governments in most years. It tends to grow in recessions, when tax income falls and spending on benefits rises. A surplus is the opposite, when the government takes in more than it spends. The UK last ran a surplus in the early 2000s. Chancellors set fiscal rules that limit how big the deficit can be, especially for day-to-day spending.
The left often argues that borrowing to invest in infrastructure and public services can pay for itself through growth.
The right often argues for balancing the books, saying persistent deficits push up debt, interest costs and future taxes.
Britain is split. Now you decide.
Your Budget choices in Population Decides set the deficit, and the markets and the OBR react if it grows too fast.
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What is the difference between the deficit and the debt?
The deficit is one year's borrowing. The debt is the total of all past borrowing still owed.
What is the current budget deficit?
It is borrowing to pay for day-to-day spending, leaving out investment. Fiscal rules often focus on this measure.