UK borrowed bigger than forecast £24.3bn in April as inflation adds to benefits bill
Summary
The UK government borrowed £24.3 billion in April 2026, which was more than expected due to higher costs for pensions and benefits caused by inflation. Rising borrowing costs and political uncertainty also affected the debt, while the overall economy performed better than predicted earlier in the year.Key Facts
- UK borrowing in April 2026 was £24.3 billion, £4.9 billion more than April 2025.
- Borrowing was £3.4 billion higher than the forecast by economists and the Office for Budget Responsibility.
- Debt interest payments reached £10.3 billion in April, the highest on record for that month.
- Inflation increased the cost of pensions and social benefits, adding £2.7 billion to benefit expenses.
- Political uncertainty, including concerns over the Iran conflict and UK leadership changes, raised borrowing costs.
- UK government bonds (gilts) faced heavy selling pressure due to fears of higher future borrowing.
- The International Monetary Fund advised the UK to continue efforts to reduce government borrowing.
- The UK economy showed stronger growth at the start of 2026, allowing a revision of the annual borrowing forecast down by £3 billion.
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