Britain posts much bigger budget deficit for 2024/25 than expected
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Britain’s government borrowed almost 15 billion pounds more in the financial year that just ended than official budget forecasters had estimated a month ago, according to data that heaped more pressure on the public finances.
Public sector net borrowing for the 2024/25 financial year was 151.9 billion pounds ($202.1 billion), the Office for National Statistics said on Wednesday.
In its forecasts published in March, the Office for Budget Responsibility had projected a budget deficit for the financial year ending in March of 137.3 billion pounds.
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It marked the third-biggest year for government borrowing in cash terms on record.
The line chart shows UK’s public sector net borrowing between 1997/98 and 2024/25 with the values for the three highest years annotated.
With finance minister Rachel Reeves’ budget plans hinging on a tiny buffer against the government’s self-imposed fiscal rules – equivalent to less than 1% of annual spending – investors are watching public sector finance data more closely.
British government bonds have become increasingly volatile in recent years, reflecting unease in financial markets over Britain’s mix of low growth, high debt interest costs and persistent inflation.
A closely-watched business survey on Wednesday suggested much of the economy slowed sharply this month.
