Pressure on Chancellor after Government borrowing jumps to £20.2bn

UK Government borrowing rose by more than expected to £20.2 billion last month, mounting further pressure on Chancellor Rachel Reeves to meet her fiscal rules.

The Office for National Statistics (ONS) said public sector net borrowing rose to its fourth-highest April figure on record after increasing £1 billion year-on-year.

The state borrowing figure reflects the difference between Government spending and its income, largely through tax receipts.

The latest figure showed that the Chancellor had to borrow more money than expected over the month, surpassing analyst predictions of £17.6 billion.

Growth

It comes as Ms Reeves seeks to meet her fiscal rule of balancing day-to-day spending with revenues by 2029-30, while improving public services and targeting accelerated economic growth.

The rise in borrowing was largely linked to increases in public sector pay, national insurance payments and higher benefits and state pensions.

Deputy director for public sector finances at the ONS Rob Doody said: “At £1 billion higher than the same time last year, this April’s borrowing was the fourth highest for the start of the financial year since monthly records began more than 30 years ago.

“Receipts were up on last April, thanks partly to the higher rate of national insurance contributions.

“However, this was outweighed by greater spending, due to rising public services’ running costs and increases in many benefits and state pensions.”