US EditionPressure grows on Reeves to raise taxes as borrowing hits £17.7bn in May
- The Office for National Statistics reported UK government borrowing reached £17.7 billion in May 2025, the second highest May figure on record.
- This borrowing increase followed Chancellor Rachel Reeves's April rise in employer National Insurance contributions, partly boosting tax receipts.
- Despite higher tax revenue, increased spending and economic underperformance led borrowing to rise £700 million above last year and above the £17.1 billion forecast by the Office for Budget Responsibility.
- Economist Thomas Pugh predicted tax rises of £10 billion to £20 billion as Reeves faces pressure to address lost fiscal headroom clawed back in March, and AJ Bell’s Danni Hewson expects further spending cuts or tax increases.
- These trends suggest borrowing pressures may push the Chancellor to announce tax rises or spending cuts at the autumn budget amid concerns for the UK economy and high street sales.
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Frozen personal tax thresholds will make Britons poorer: Five ways to build passive income to protect against higher taxes
Keeping on top of your tax obligations can be tricky enough in the here and now, but with Chancellor Rachel Reeves freezing income tax thresholds until 2028, more Britons than ever are likely to line the pockets of the taxman.
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Government borrowing jumps despite boost from national insurance hike
The ONS said borrowing rose to £17.7 billion last month, the second highest figure on record for May.
·Bromsgrove, United Kingdom
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Leaning Left6Leaning Right3Center2Last UpdatedBias Distribution55% Left
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