UK government borrowing rose to 20.2 billion pounds in April

According to the Office for National Statistics, Britain’s public sector net borrowing hit 20.2 billion pounds ($27.07 billion) last month, up 1 billion pounds ($1.34 billion) from April 2024. This marked the fourth-highest April figure on record since 1993. 

The UK’s public sector net debt is now estimated at 95.5% of GDP, one of the largest since the 1960s. 

Tax revenues also increased in April, driven by higher compulsory social security contributions. Yet, this was offset by growing government spending due to inflation and rising wages. The government’s expenditure rose 4.2 billion ($5.63 billion) from the previous year to 93.3 billion pounds ($125 billion).

The Guardian says Chancellor of the Exchequer Rachel Reeves could struggle to manage the public finances as Britain’s economy faces heightened uncertainty stemming from US tariffs. The Office for Budget Responsibility warns of the UK GDP shrinking by 1% in the worst-case scenario.