Chancellor Rachel Reeves recently stated in Parliament that UK borrowing had fallen below 5% of GDP for the first time since 2019, attributing this to her actions. However, official figures reveal that borrowing was also below 5% in two previous fiscal years.
Chancellor's Claim
During a statement on the economic response to the war in Iran, Reeves said: “Borrowing has fallen below 5% for the first time since 2019 because of the actions that I have taken as Chancellor.” She made a similar remark in late April, telling MPs: “Our borrowing as a share of GDP fell to 4.3% in the last financial year and is due to fall in every single year of this Parliament. This is the first time that our deficit has been lower than 5% since 2019.”
What the Data Shows
Government figures confirm that UK borrowing was 4.2% of GDP in the 2025/26 fiscal year, the lowest since 2.6% in 2019/20. This is a revised figure; when Reeves spoke in April, it was estimated at 4.3%. However, the data also show borrowing fell below 5% in 2022/23 and 2023/24, when it stood at 4.8% in both years.
Historical Context
The Office for National Statistics (ONS) updated its report on public sector finances on Friday, after Reeves' comments. It showed borrowing at 4.2% for the year ending March 2026, down from 5.2% in 2024/25. The ONS noted this is the lowest rate since 2019/20. After 2019/20, borrowing spiked to 14.7% during the pandemic, then fell to 5.0% in 2020/21, and subsequently dropped below 5% to 4.8% in both 2022/23 and 2023/24.
Conclusion
While borrowing in 2025/26 is indeed the lowest since 2019, Reeves' claim that it is the first time below 5% since 2019 is inaccurate. ONS data shows borrowing was below that threshold in two earlier years.
