UK Government's borrowing exceeds forecasts, complicating tax cut plans

February's higher-than-expected borrowing of £8.4bn poses challenges for Chancellor Hunt's pre-election tax cut ambitions, amid rising spending pressures.

Government borrowing in February was £8.4bn, surpassing economists' predictions of £6bn, due to higher benefits payments and other costs.
Despite the increase, borrowing was £3.4bn less than the same month last year, with tax receipts rising sharply.
The Treasury has borrowed £106.8bn so far this fiscal year, the lowest amount in four years, but sustained high borrowing levels may necessitate post-election fiscal tightening.
Tax receipts increased by £50bn over the financial year, boosted by income tax, corporation tax, and VAT, while government spending exceeded £1 trillion.
Economic analysts suggest that the government may still attempt pre-election tax cuts, but warn of potential borrowing overshoots and the need for future fiscal tightening.