The Office for National Statistics (ONS) has said that public sector net borrowing has soared to £151.9 billion which is more than expected in the latest financial year.
The government’s borrowing is £14.6 billion higher than the £137.3 billion which was predicted by the Office for Budget Responsibility (OBR).
The ONS said the borrowing is the third-highest in any financial year since records started in 1947.
Grant Fitzner, the ONS’s chief economist, said, “Our initial estimates suggest public sector borrowing rose almost £21 billion in the financial year just ended as, despite a substantial boost in income, expenditure rose by more, largely due to inflation-related costs, including higher pay and benefit increases.
“At the end of the financial year, debt remained close to the annual value of the output of the economy, at levels last seen in the early 1960s.”
Chancellor Rachel Reeves said, “The world has changed and we are in a new era of global trade.
“I am in no doubt that the imposition of tariffs will have a profound impact on the global economy and the economy at home.”
Chief Secretary to the Treasury, Darren Jones insisted the government “will never play fast and loose with the public finances.”
“We are laser-focused on making sure taxpayer money is delivering our Plan for Change missions to put more money in people’s pockets, rebuild the NHS and strengthen our borders,” he added.
Shadow chancellor and Conservative MP Mel Stride said the latest ONS figures “lay bare the price the British people are paying for Rachel Reeves’ choices”.
“By fiddling the fiscal rules, increasing borrowing by £30 billion a year and piling up debt – these figures are alarming but not surprising,” he said.
Leave a Comment