FX.co ★ UK Public Borrowing Surpasses Expectations

In April 2025, the UK's public sector net borrowing, excluding public sector banks, reached £20.2 billion, up from £19.1 billion in the same month the previous year and surpassing the anticipated £17.9 billion. This figure represents the fourth-highest level of borrowing for April since records began in 1993. Public sector expenditure increased by £6.6 billion from the previous year, largely due to heightened spending on public services and benefits, although this was somewhat counterbalanced by a reduction in debt interest costs. Concurrently, total receipts saw an increase of £5.6 billion, bolstered by a rise in central government tax revenues and enhanced National Insurance contributions, owing in part to the employer rate hike effective from April 2025. Public sector net debt, excluding public sector banks, was estimated to be 95.5% of GDP at the end of April, rising by 0.7 percentage points from the previous year and remaining close to levels not seen since the early 1960s.