From Deficit to Surplus: UK Economic Forecast by 2028

Finance minister Rachel Reeves predicts the UK's budget deficit to be 26.2 billion pounds for 2025/26, but moving into a surplus of 10.9 billion pounds by 2027/28, according to Office for Budget Responsibility projections. Current government borrowing is at 127 billion pounds, expected to decrease significantly.

On Wednesday, Finance Minister Rachel Reeves announced that Britain's budget deficit is projected to reach 26.2 billion pounds in the 2025/26 financial year. This forecast is based on new data released by the Office for Budget Responsibility.

Reeves highlighted that despite this projected deficit, the UK is expected to shift into a budget surplus of 10.9 billion pounds by the 2027/28 financial year.

The government is currently borrowing an estimated 127 billion pounds. However, borrowing is anticipated to decline, falling from 4.5% of economic output this year to just 2.1% of GDP by the conclusion of the forecast period.