Public Sector Net Cash Requirement

The Public Sector Net Cash Requirement (PSNCR), formerly known as the Public Sector Borrowing Requirement (PSBR), is the official term for the Government budget deficit in the United Kingdom, that is to say the rate at which the British Government must borrow money in order to maintain its financial commitments.

The PSNCR is distinct from, but often confused with, the United Kingdom national debt, which is the total amount of money owed by the British Government to its creditors at any given time.

[1] Since 2009 large quantities of gilts have been created and repurchased by the Bank of England under its policy of quantitative easing, with a view to stimulating economic growth.

[3] Labour began to pursue a looser fiscal policy following the 2000 Spending Review, and they started to run an annual deficit from January 2002.

Following the departure of George Osborne, his replacement Philip Hammond dropped the goal of eliminating the budget deficit, giving himself leeway to help the economy cope with the slowdown expected as Britain prepares to leave the European Union.