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Pressure builds on Reeves as borrowing rises ahead of spending review
- The UK government borrowed £20.2 billion in April 2025, marking the fourth-highest April borrowing since records began in 1993.
- This borrowing increased by £1 billion compared to April 2024, surpassing analyst forecasts of £17.6 billion due to higher public sector pay and national insurance contributions.
- The rise in borrowing reflected increased spending on goods and services by £4.2 billion, social benefits by £1.3 billion, and inflation-linked rises in state pensions.
- Rob Doody from the ONS noted that this April’s borrowing exceeded the amount from the same month last year by £1 billion and ranks as the fourth largest recorded for the beginning of a financial year since monthly tracking started over three decades ago.
- The rise in borrowing intensifies challenges for Chancellor Rachel Reeves as she strives to adhere to fiscal targets by 2029-30, while also fueling concerns about potential tax increases amid sluggish economic growth.
24 Articles
24 Articles
How does the national debt affect you? A budget expert explains.
The federal government is on track to borrow nearly $2 trillion this year. And while that budget deficit is a major concern for many Americans, the specifics of how and why the government borrows so much money can often seem confusing. That's why Reason asked Romina Boccia, director of budget and entitlement policy at the Cato Institute, to break it down into more manageable morsels. So why does the federal government borrow so much? Because "it…
UK public finances show bigger than expected deficit
Britain's government kicked off the 2025/26 financial year in April by again borrowing more than expected, suggesting no let-up in the pressure on the public finances and finance minister Rachel Reeves ahead of a major review of spending.
Rising debt burdens Britain and the US
Rachel Reeves (via Kirsty O'Connor / Treasury)Tax rises in the Autumn are "starting to feel inevitable" warned Capital Economics today after the UK government borrowed more than expected last month, making Rachel Reeves’s unenviable task to balance the books that bit harder.According to the ONS, government borrowing (the difference between spending and tax income) rose to £20.2bn in April, considerably higher than the £17.9bn forecast and £1bn m…
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