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.
Public sector net borrowing was £20.155 billion in April, the Office for National Statistics said today.
A Reuters poll of economists showed a median forecast of £17.9 billion for public sector net borrowing.
Economists have routinely under-estimated the extent of Britain’s budget deficit each month over the past year.
Reeves is due to deliver her first multi-year spending review on June 11 which will set the budgets for public services.
The ONS revised down its estimate of borrowing for the last financial year that ended in March to £148.3 billion from £151.9 billion previously, or 5.1% of economist output compared to 5.3%. In 2023/24, the deficit was 4.8% of GDP.
In its forecasts published in March, the Office for Budget Responsibility – which provides the fiscal and economic outlooks used by the government – projected a budget deficit for the financial year ending in March of £137.3 billion.
