US EditionUK borrowing lowest for three years but Iran war clouds outlook
Higher receipts helped offset spending increases, leaving borrowing 13.1% lower than a year earlier and £0.7 billion below the OBR forecast.
- On Thursday, the Office for National Statistics reported public sector net borrowing fell £19.8 billion to £132 billion for the financial year ending March 2026, beating the Office for Budget Responsibility forecast by £0.7 billion.
- Increased tax receipts more than offset rising government spending during the period, driving the annual decline to the lowest level since the 2022-23 financial year.
- Borrowing in March reached £12.6 billion, a £1.4 billion year-on-year decrease, while annual borrowing as a share of GDP fell to its lowest level since 2019-20.
- Chancellor Rachel Reeves welcomed the data as an "unexpected dose of good news," while Chief Secretary to the Treasury James Murray said the deficit reduction demonstrates the government's plan to cut borrowing is working.
- Analysts warn the improvement may be short-lived as the war in Iran drives up energy prices; rising fuel costs, described as "Trumpflation," could force the government to increase household support and potentially raise future borrowing.
12 Articles
12 Articles
Labour's tax hikes had FINALLY started bringing down Government borrowing despite bonanza on benefits and public sector pay… but that was before Iran chaos
Official figures showed another £132billion was borrowed in the 12 months to the end of March - £19.8billion lower than the previous financial year.
UK borrowing falls by £19.8billion in boost for Rachel Reeves — but economists warn rises ahead
UK Government borrowing fell by £19.8billion over the past financial year to £132billion in the 12 months to March 2026.Borrowing came in £700million below the Office for Budget Responsibility (OBR) forecast of £132.7billion, the Office for National Statistics (ONS) said.This represents a 13.1 per cent decline compared with the previous year and marks the lowest annual borrowing total since 2022-23.The figures provide a boost for Chancellor Rach…
perspectivemedia.com
Annual Government borrowing drops unexpectedly to lowest in three years
The ONS said public sector borrowing was estimated to have dropped £19.8 billion to a lower-than-expected £132 billion in the year to March. Chancellor Rachel Reeves has been given an unexpected dose of good news after official figures showed UK Government borrowing fell in the latest financial year and undershot official forecasts by £700 million. The Office for National Statistics (ONS) said public sector borrowing was estimated to have droppe…
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