UK Chancellor Jeremy Hunt has received a setback as official statistics show that borrowing for the most recent fiscal year exceeded forecasts, reaching £120.7 billion due to rising salaries and benefit payments.
The Office for National Statistics (ONS) estimates that net public sector borrowing was £7.6 billion lower than in 2022-23 but £6.6 billion higher than the UK’s official forecaster had predicted. The Office for Budget Responsibility (OBR) had projected borrowing of £114.1 billion for the year ending in March.
This follows a March borrowing figure of £11.9 billion, which is £4.7 billion lower than the previous year but higher than the £10 billion anticipated by most economists. Jessica Barnaby, the ONS’s deputy director for public sector finances, said: ‘Spending increased by about £58 billion, with higher spending on public services and benefits exceeding large decreases in interest payable and energy support scheme costs.’
A Treasury spokesperson stated that ‘Debt has grown in recent years because we rightly protected millions of jobs during Covid and paid half of people’s energy bills after (Vladimir) Putin’s invasion of Ukraine sent bills skyrocketing.’ He went on to say that the government ‘must stick to the plan to reduce debt’.
