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Government borrowing hits third-highest level since 1947

Chancellor Rachel Reeves may have to raise taxes in the October budget, economists warn — Chancellor Rachel Reeves may have to raise taxes in the October budget, economists warn (Kirsty O'Connor/Treasury)

UK government borrowing reached £151.9 billion in the year to March, exceeding the Office for Budget Responsibility's forecast by £14.6 billion.
This marks the third-highest borrowing level since 1947, trailing only the figures recorded during the Covid-19 pandemic and the 2010 global financial crisis.
Increased government expenditure, particularly on wages and benefits, contributed to the higher borrowing despite a rise in Treasury income.
Economists are expressing concern over the impact of US tariffs on UK economic growth, potentially exacerbating the strain on public finances.
They are warning that taxes may need to be raised in the October budget to bridge the gap.

UK Government borrowing exceeds forecast as tariffs to weigh on public purse — In full