National Statistical

Today, the Chancellor of the Exchequer has announced that the Government will use a broader definition of debt for its fiscal target, Public Sector Net Financial Liabilities (PSNFL), referred to by government as ‘net financial debt’. Jessica Barnaby explains how that statistic is defined and how it differs from the metric used before.  

One of the ONS’s most watched figures is the level of public sector debt. Complied jointly with HM Treasury, this number is often compared with the overall size of the UK economy (GDP) and presented as a “debt to GDP ratio” to give it proper context. As this figure has recently been hovering around the 100% level, it has received more attention than normal. Jessica Barnaby explains why our initial estimates can sometimes get revised.