UK borrows £24.3bn in April

Britain’s public borrowing jumped at the start of the new financial year, giving Chancellor Rachel Reeves a harder fiscal backdrop just weeks after stronger growth data had offered some relief. The Office for National Statistics said on May 22 that public sector net borrowing, excluding public sector banks, was £24.3 billion in April 2026. That was £4.9 billion more than in April 2025 and £3.4 billion above the monthly path implied by the Office for Budget Responsibility’s March forecast. Public sector net debt excluding public sector banks stood at 94.2% of gross domestic product at the end of April, the ONS said. ### Why did borrowing rise so much in April? April 2026 debt interest payable was £10.3 billion, the ONS said, up from the same month a year earlier as interest costs remained elevated. The statistics office said inflation-linked benefit payments also added to spending, helping push borrowing above both last year’s level and the OBR’s monthly profile. (ons.gov.uk) The Office for Budget Responsibility said in its monthly commentary that the April figure provided “limited information” about the likely path for the rest of the year because it was so early in the fiscal cycle. The watchdog nonetheless said the initial estimate for April borrowing was £3.4 billion above the profile consistent with its March forecast. ### How far does this put Reeves off course? The OBR said in March that full-year borrowing for 2025-26 was expected at £132.7 billion, and in an April update it said the initial estimate for that year had come in close to forecast at £132.0 billion. (ons.gov.uk) Against that backdrop, April’s overshoot does not by itself determine the year’s outcome, but it leaves Reeves facing immediate scrutiny over whether tax receipts and spending control can offset higher early borrowing. (obr.uk) April is also a month when annual uprating of some welfare payments takes effect, which can make the opening month of the fiscal year especially sensitive to inflation. The ONS said the current budget position and borrowing figures are provisional and commonly revised as more data arrives. ### What does the debt figure show? The ONS said public sector net debt excluding public sector banks was provisionally 94.2% of GDP at the end of April. (obr.uk) That was 0.5 percentage points higher than a year earlier and, by the ONS’s measure, remained around levels last seen in the early 1960s. That debt ratio matters because higher debt stock and higher market rates feed through into the government’s financing bill. (ons.gov.uk) The Debt Management Office said on May 22 it planned two programmatic gilt tenders for May 28 and announced a syndicated re-opening of 5¼% Treasury Gilt 2041, underscoring that gilt issuance continues as borrowing needs are financed through the market. ### Did markets offer any relief this week? (ons.gov.uk) UK gilt yields fell over the week, according to market coverage cited in the source briefings, offering some respite after earlier volatility. The official Debt Management Office data pages show daily and historical yield series, though the DMO’s website does not characterize weekly moves in narrative form. For Reeves, lower yields can reduce pressure at the margin if sustained, but the official borrowing data still showed a higher starting point for the new year. (dmo.gov.uk) The ONS and OBR statements did not link the April borrowing figure to any immediate policy change. ### What comes next in the official data? The Office for National Statistics said its next public sector finances release is due on June 19, 2026. (dmo.gov.uk) That publication will give investors, economists and the Treasury the next official reading on whether April’s borrowing rise was an early-year spike or the start of a broader deterioration. (ons.gov.uk)