A viral social media post claiming the United Kingdom holds nearly $900 billion of United States government debt has sparked debate, but the reality behind the headline figure is more complex than it appears.
The Viral Claim and the Core Facts
In January 2026, a user on social media platform X stated that the UK holds 888.5 billion US dollars (approximately £662.3 billion) of US debt, adding a pointed political message. While the dollar figure itself is accurate according to official US Treasury data, the implication that this sum represents a direct liability of the British government is misleading.
The data, current as of November 2025, shows the US gross national debt stood at a staggering $38.1 trillion (£28.4 trillion). Of this, foreign entities held just under $9.4 trillion (£7.0 trillion). The UK was indeed the second-largest foreign holder, after Japan, with the cited $888.5 billion.
Government vs. Private: Unpacking the "UK-Held" Debt
Critically, the US Treasury's country-by-country data measures debt held in accounts located within that nation, not exclusively debt owned by that nation's government or residents. A report from the US Library of Congress clarifies that foreign holdings are split between official (governmental) and private sources.
In November 2025, foreign governments globally owned about 42% of all foreign-held US debt, equating to roughly $3.9 trillion. The remaining majority is held by private individuals, investment funds, pension schemes, and businesses worldwide.
The US does not publish a public breakdown showing what portion of the UK's $888.5 billion is owned by HM Government versus private British entities. Furthermore, due to the structure of global finance, a significant portion of the debt recorded against the UK is likely held on behalf of investors from other countries using London's financial institutions as custodians.
The "Custodial Bias" of Major Financial Hubs
The US Treasury itself warns of a "custodial bias" in its data. This means securities are recorded against the country where the custodian bank or financial institution holding them is located, not the nationality of the ultimate owner.
For example, if a German investor buys a US Treasury bond and holds it in an account with a Swiss bank, it is counted as Swiss-held debt. This effect is pronounced for major international financial centres like the City of London.
"This 'custodial bias' contributes to the large recorded foreign holdings of US securities in major financial centres, such as Belgium, the Caribbean banking centres, Luxembourg, Switzerland, and the United Kingdom," the US Treasury states.
Therefore, while the $888.5 billion figure is technically correct for US debt held in British accounts, it encompasses assets owned by the UK government, British private sector, and a multitude of international clients of UK-based financial services firms. The viral post's simplified narrative obscures this crucial financial nuance.
