UK April borrowing hits highest level since Covid
The UK Office for National Statistics (ONS) said public sector borrowing reached £20.2 billion in April, the highest level since 2021. Social benefit payments and debt interest costs led the rise. Chancellor Rachel Reeves will consider additional fiscal measures in the October budget.
Public finance data released by the UK Office for National Statistics (ONS) showed that public sector borrowing in April 2026 was £20.2 billion, the highest monthly level since April 2021. ONS senior chief statistician Jessica Barnaby said the figure came in about £2.3 billion above the Office for Budget Responsibility (OBR) forecast of £17.9 billion.
The main drivers of the increase were social benefit payments (up 6.8% year-on-year) and UK debt interest costs (£12.4 billion, up 22% year-on-year), according to ONS data. Total public debt reached 98.6% of GDP. After the Iran crisis, 10-year Gilt yields rose to 4.82%.
Chancellor Rachel Reeves said in a Treasury statement: 'We will keep to our rules and take the measures required in the October budget'. Capital Economics chief economist Paul Dales assessed: 'To stay within the fiscal anchor, Reeves may need to announce an additional £15-20 billion in tax or spending measures'. Shadow chancellor Mel Stride criticised 'borrowing out of control'.
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