Economists say Chancellor Rachel Reeves may have to raise taxes in the October Budget.
Cliff Notes: Government borrowing hits third-highest level since 1947
- UK govt borrowing reached £151.9 billion in the year to March, exceeding the OBR forecast by £14.6 billion
- It’s the third-highest borrowing level since 1947, behind only the Covid pandemic and the 2010 global financial crisis
- Increased government cost, particularly on wages and benefits, contributed to the higher borrowing rise despite a rise in Treasury income.
- Economists are concerned over the impact of US tariffs on UK economic growth, potentially worsening the strain on public finances
- They say that taxes might have to be raised in the October Budget to bridge the gap
