Topic analysis

Government borrowing higher than expected in April

The UK government borrowed £24.3bn in April 2026, the highest for the month since the 2020 Covid pandemic, exceeding both the previous year's figure and the Office for Budget Responsibility's forecast. Driven by inflation-linked benefit and state pension increases, record debt interest payments, the borrowing overshoot comes alongside a 1.3% drop in retail sales volumes, with analysts warning of a fragile fiscal backdrop and deteriorating growth outlook amid ongoing economic uncertainty.