UK government borrowing bucks expectations to rise in April

The UK government has grown unexpectedly in April, before reviewing the high-expenditure spending next month to impose pressure on Chancellor Rachel Reeves.

The images published by the National Statistics Office on Thursday showed that the new tax was taken in the first month of the year – the difference between the cost and income of the public sector – the deficit of 19.1BN increased on April 2024.

Economists surveyed by Reuters predicted that the official Orrows would drop to $ 17.5 billion last month.

The ONS said the April overshoot was run by public service and facilities. In the case of the expenditure, the jump increased to the receipt, which partially came down to the contribution of higher national insurance announced by the budget.

Despite the enthusiasm from the contribution of NI, “the financial year made a bad start,” Consultant Capital Economics economist Ruth Gregory says. “It raises the possibility that if the Chancellor wants to hold his financial rules, it will need to increase more taxes in the autumn budget.”

Reeves will set a detailed expenditure plan for separate government departments in his June 5th review – the Labor Government is the first since the 20th decade.

He is under pressure to deal with his financial rules to balance daily expenditure with revenue by 2021-5 while enhances public service and enhancing enthusiasm.

For the Chancellor’s Slander Room for Manouver, which was last calculated on £ 9.9bn dollars, the economic impact of US President Donald Trump’s tariff fell under pressure.

Deputy Prime Minister Angela Rainner requested Chancellor in a memorial sent to Reevse before making his spring statement in the end of March Increase taxes further Rather than spending public expenses.

In response to April statistics, Treasury Principal Secretary Darren Jones said: “After the financial instability of the public after year, we decided to stabilize our public financial stability, which helped reduce the interest rate of four interests since August, reduce the cost of business and labor -intensive people.”

On the ONS information on Thursday showed that the official Orrow adoption of the government orrow in the fiscal year was $ 1.5 billion – the previous estimate of the ONS $ 1.5 billion, but $ 17.5 billion is $ 1 billion for budget responsibility, the United States’s financial overcome.