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5d ago

UK Borrowing Hits £20.2bn in April, Surpassing Forecasts

Chancellor Rachel Reeves faces intensified scrutiny as public finances strain under rising expenditures and debt levels reach 95.5% of GDP.

Chancellor of the Exchequer Rachel Reeves speaks during a reception, following the UK-EU summit, in London, Britain, May 19, 2025. REUTERS/Hannah McKay/Pool/ File Photo
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Overview

  • Public sector net borrowing in April 2025 reached £20.2 billion, exceeding economists' forecast of £17.9 billion and marking the fourth-highest April borrowing figure since 1993.
  • Government spending increased by £4.2 billion year-on-year, driven by public sector pay rises, higher benefits, and state pensions, outpacing gains in tax revenue from national insurance hikes.
  • The Office for National Statistics revised borrowing for the 2024/25 fiscal year down to £148.3 billion, but the figure remains £11 billion above the Office for Budget Responsibility
  • Public sector net debt now stands at 95.5% of GDP, a level not seen since the 1960s, raising concerns over the UK's fiscal sustainability.
  • Chancellor Reeves is set to deliver a multi-year spending review on June 11, facing mounting pressure to balance fiscal rules while addressing demands for public service funding and economic growth.