The UK ran a trade deficit last April, so the government borrowed more than expected as inflation pushed up interest payments on the debt.
The latest data from the Office for National Statistics showed that rising inflation and the cost of covering electricity bills have again pushed up borrowing, showing the government has borrowed more than £25bn (over $31bn). the highest borrowing for the month of April ever.
Borrowing was £11.9bn (over $14bn) higher than in April 2022 and the second highest since monthly accounts began in 1993 (behind April 2020 when the economy was hit by the pandemic) .
Economists had forecast that public sector net borrowing could reach £19.75bn in April.
government sector net borrowings (excluding public banking sector) amounted to 25.6 billion pounds. in April 2023.
second highest April borrowings since recording began, mainly due to:
▪️ cost of energy support scheme
▪️ increased benefit payments
▪️ debt interest
– Office for National Statistics (ONS) (@ONS) May 23, 2023
“The increase in the retail price index has led to an increase in interest accrued on index-linked financial bonds,” the Statistics Office said in a statement.
This is the third highest interest rate payable in any month, after £20.0bn in June 2022 and £18.0bn in December 2022.
UK energy subsidy packages mean the central government has spent £3.9bn in subsidies, up £1.8bn from April 2022. Much of this increase is attributable to the cost of housing energy tariff guarantees and rebate schemes.
Source: The Guardian
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