In fact, the UK government is still trying to come to terms with a current national debt of some £2.9 trillion. The next mind-blowing figure is the total the state actually owes. This debt includes different types of financial instruments, such as government bonds also known as “gilts.” Gilts were thought to be the safest of safe investments. Their low-risk profile makes them an appealing choice for domestic as well as international financial institutions.
The UK government’s borrowing patterns vary from month to month, therefore assuming the overall national debt. In November 2025, the government paid £3.4 billion in interest payments. This was a remarkable turnaround from £15.5 billion deficit in November 2022 and £15.0 billion in November 2023. It was a significant drop compared to last November 2024 when interest payments were £13.6 billion.
In the context of the last full financial year ending March 2025, the UK government borrowed a total of £152.6 billion. Despite these figures, analysts note that UK debt levels remain relatively low compared to much of the last century when measured against the size of the economy.
Gilts are mostly held, and thus mostly bought, by financial institutions, chief among them pension funds, investment funds, banks and insurance companies. These entities see gilts as a long-term stable investment because of their relative safety and reliability.
In response, Downing Street has reiterated confidence in the government’s long term approach to addressing economic headwinds.
“There is no doubt about the government’s commitment to economic stability.” – Downing Street
In recent years, net interest payments on federal government debt have been in steady decline. By November 2025, the payment had fallen to £1.9 billion below the level for the same month a year earlier. This decline is good news as it suggests the government may be getting better control over its fiscal management and borrowing costs.
The changes in borrowing and interest payments are indicators of the larger economic situation and federal policies to keep the country fiscally responsible. The feds are prioritizing their fiduciary responsibility. At the same time, stakeholders are monitoring these trends sharply to assess their potential effects on the UK’s economic development ecosystem.