The November 2025 budget has not changed the UK government’s financial position

The government’s income is about £1.1 trillion (or £38k per household).  It spends about £1.3 trillion (or £45k per household), which you will notice is more than the government’s income.

If this continues, then the government is running up debts at a rate of £0.2 trillion per year (or £7k per household).

The total debt so far is nearly £3 trillion (£104k per household).

The cost of servicing that debt is increasing, and predicted to be about £0.1 trillion (about £4k per household) per year. 

On a per household basis:

• The government’s income is £38k
• The government’s spending is £45k
• So there is an annual deficit of £7k
• In addition the government has accumulated debts of £104k
• The annual cost of interest on that debt is £4k
• So there is an annual deficit including interest of £11k
• This is unsustainable

That’s why the government has to increase income (through tax changes or growth) or reduce costs (cut spending).

Incidentally, the November 2025 government budget does not change these numbers. The government has announced measures intended to get more tax in, and spend less as a proportion of it, in future years. But in the coming year, as before, the government is still making a loss of £11k per household, and increasing its debt.

In short, if the government was a household on £38k per year, it would be spending about £11k (30%) more than it earns – and therefore continuing to run up debts at a significant pace – while promising to reverse this in future.