Key Facts

• The UK government borrowed £151.9 billion in the year to March, which was £20.7 billion more than the previous year.
• Chancellor Rachel Reeves is trying to make a new trade deal with the US. This could help the UK avoid extra charges, called tariffs, on goods sold in America.
• Some people think that the government might have to cut its spending or increase taxes to handle the extra borrowing.
• The UK, like many countries, is being charged extra money (tariffs) by the US on goods it sells there.
• The International Monetary Fund, a big organization that helps with money matters globally, thinks that the UK's economy won't grow as much as expected in 2025.
• Tariffs, increasing prices (inflation), and rising costs of borrowing may slow down the UK's economic growth.
• Taxes brought in more money for the government, but they still borrowed more than expected because of higher spending on pay and benefits.
• The government's debt interest, which is money it pays because it borrowed money, increased by £1.3 billion to £4.3 billion last month.