UK budget deficit jumped in February as Iran war darkens fiscal outlook
By Andy Bruce
Published on March 20, 2026.
UK public finances are under strain after a surge in borrowing for February, with the Office for National Statistics reporting a 14.3 billion pound ($19.17 billion) increase in public sector net borrowing compared to the previous year. This increase was attributed to the U.S.-Israeli war in Iran and subsequent surge in energy prices, which could put pressure on public spending. The ONS cited the timing of debt interest payments as a factor behind the 18% increase in borrowing. Despite this, the ONS revised its estimate for January surplus to 31.9 billion pounds from 30.3 million pounds previously, the data indicates a vulnerability in public finances.
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