UK Government Misses Borrowing Target, Casting Doubt on Tax Cut Plans

Despite a decrease in annual borrowing, the UK's budget deficit exceeded forecasts, complicating fiscal strategies ahead of the general election.

The UK Treasury borrowed £120.7 billion in the 2023-24 fiscal year, missing the Office for Budget Responsibility's forecast by £6.6 billion.
Public sector debt reached 98.3% of GDP, a level last seen in the early 1960s, reflecting increased government spending and high tax burdens.
Economists warn that the larger-than-expected deficit limits the government's ability to implement further tax cuts before the upcoming general election.
Increased spending on public services and benefits, coupled with reductions in interest and energy support costs, led to a slight decrease in the overall deficit.
Market analysts express concerns over the UK's fiscal health, suggesting that economic growth may be hampered by the current financial constraints.