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UK borrowing lowest for three years but Iran war clouds outlook
The Office for National Statistics said receipts outpaced spending as borrowing fell £19.8 billion and came in £700 million below the forecast.
- The Office for National Statistics reported public sector net borrowing fell to £132.0 billion in the financial year ending March 2026, down £19.8 billion year-on-year and £0.7 billion below the Office for Budget Responsibility forecast.
- Chancellor Rachel Reeves and Chief Secretary to the Treasury James Murray attributed the £19.8 billion reduction to government plans to cut borrowing, while the ONS noted increased receipts offset rising spending nationwide.
- Borrowing as a proportion of GDP reached 4.3% for the year, the lowest level since 2019-20. March 2026 borrowing fell to £12.6 billion, down £1.4 billion year-on-year.
- While the lower deficit provides the Treasury short-term fiscal breathing room, rising oil prices following the Iran conflict threaten to drive inflation and increase borrowing if the government provides household support.
- The International Monetary Fund warned earlier this month the UK economy faces significant risks from the Iran conflict. This week, a 0.3% inflation jump marked the first evidence of "Trumpflation" as fuel prices rise.
13 Articles
13 Articles
Labour's tax hikes had FINALLY started bringing down Government borrowing despite bonanza on benefits and public sector pay… but that was before Iran chaos
Official figures showed another £132billion was borrowed in the 12 months to the end of March - £19.8billion lower than the previous financial year.
UK borrowing falls by £19.8billion in boost for Rachel Reeves — but economists warn rises ahead
UK Government borrowing fell by £19.8billion over the past financial year to £132billion in the 12 months to March 2026.Borrowing came in £700million below the Office for Budget Responsibility (OBR) forecast of £132.7billion, the Office for National Statistics (ONS) said.This represents a 13.1 per cent decline compared with the previous year and marks the lowest annual borrowing total since 2022-23.The figures provide a boost for Chancellor Rach…
perspectivemedia.com
Annual Government borrowing drops unexpectedly to lowest in three years
The ONS said public sector borrowing was estimated to have dropped £19.8 billion to a lower-than-expected £132 billion in the year to March. Chancellor Rachel Reeves has been given an unexpected dose of good news after official figures showed UK Government borrowing fell in the latest financial year and undershot official forecasts by £700 million. The Office for National Statistics (ONS) said public sector borrowing was estimated to have droppe…
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