Glossary

Plain-English definitions of the terms used across this site.

Public sector net debt: The UK government's preferred debt measure: total liabilities of the public sector, less its liquid assets. The headline version excludes public sector banks and is the main measure used in monthly statistics.
Deficit: The amount by which government spending exceeds its income in a period. A deficit adds to debt; a surplus reduces it.
Borrowing: The cash the government raises to cover a deficit, mostly by selling gilts. Public sector net borrowing is the standard monthly measure.
GDP: Gross domestic product — the total value of goods and services the economy produces. Used as the yardstick for the size of debt and borrowing.
Debt-to-GDP ratio: Debt measured as a percentage of GDP. It shows the scale of debt relative to the economy that supports it, which matters more than the cash total alone.
Gilts: UK government bonds. The government sells them to investors and repays the value at a set date, paying interest in the meantime. Some are index-linked to inflation.
Debt interest: The cost of servicing debt. It depends on both how much is owed and the interest rate paid, and includes inflation uplift on index-linked gilts.
Tax receipts: The money the government collects in taxes, such as income tax, National Insurance, VAT, and corporation tax.
Public spending: Total government spending, including services, benefits, investment, and debt interest.
OBR: The Office for Budget Responsibility, the independent body that produces the UK's official economic and fiscal forecasts.
ONS: The Office for National Statistics, the UK's official producer of statistics including the monthly public finances.
Fiscal year: The government's financial year, running from 1 April to 31 March. Also called the financial year.
Current budget deficit: Borrowing for day-to-day spending only, excluding investment. A narrower measure than total borrowing.