STORY
Government borrowing was higher than expected in April, adding pressure on Chancellor Rachel Reeves (in photo) as ministers seek to maintain control of the public finances. The Office for National Statistics said public sector net borrowing was £24.3 billion in April, above forecasts and higher than the same month last year.
The increase reflected higher spending on debt interest, benefits and pensions, alongside the wider impact of inflation on departmental budgets. Reuters reported that the figure was £3.4 billion above the level expected by economists polled by the news agency, underlining the challenge facing the Treasury as it seeks to meet its fiscal rules.
The figures come shortly after the International Monetary Fund raised its UK growth forecast but warned that the Government should avoid unfunded measures. Reeves has said the Government will continue to focus on economic stability, investment and reducing borrowing over time.