Fuel and travel costs are pushing prices up again
Thursday 5 November 2026
Inflation has risen to 3.1%, meaning everyday spending is getting more expensive just as household budgets are already under pressure.
Public sector net debt
A UK measure of the public sector's outstanding debts after subtracting certain assets it can quickly turn into cash.
Key term
What it means
The public sector includes central and local government and some publicly owned bodies. Public sector net debt totals specified amounts they owe, such as government bonds and loans, then subtracts liquid assets, mainly cash and reserves that can readily be used. “Net” does not mean subtracting the value of every public asset: hospitals, roads and most other assets are not counted against this measure. It is an amount at a point in time, unlike a year's budget deficit.
Example
In a simplified made-up account, the public sector owes £120 billion in the kinds of debt counted and has £20 billion in counted liquid assets. Its net debt is £100 billion. A building it owns is not subtracted in this calculation.
Why it matters
It puts a number on existing public borrowing, but it does not show the full value of everything the public sector owns or owes.
Also known as
PSND
Related terms
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Budget deficit
The gap when the government and wider public sector spend more than they receive over a period.
Read more -
Debt interest
Interest the public sector pays on money it has borrowed.
Read more -
Debt to GDP ratio
Public debt compared with the value of goods and services produced in a country over a year.
Read more -
Fiscal rules
Targets or limits a government sets for borrowing, debt or other measures of the public finances.
Read more -
Government bond yield
The return a buyer expects from a government bond at its current price, usually shown as a yearly percentage.
Read more -
Primary deficit
The gap when public spending, excluding debt interest, is greater than public income.
Read more
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Highlights from about the UK economy, the UK government and the UK public sector.
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