The UK borrowed £24.3bn in April 2026, significantly more than expected, driven by high inflation and rising costs for pensions and benefits, official figures show. The figure was £4.9bn higher than the same month last year and £3.4bn above forecasts by City economists and the Office for Budget Responsibility (OBR).
Bond market jitters over the Iran war and political uncertainty surrounding a potential Labour leadership challenge pushed monthly debt interest payments to £10.3bn, the highest ever for April. The ONS said government spending on social benefits rose by £2.7bn to £29.5bn, while receipts from income tax and national insurance were boosted by a bumper month for finance industry bonuses.
Chancellor Rachel Reeves has faced mounting pressure over the public finances, with the International Monetary Fund urging the government to stick to its borrowing reduction plans. Martin Beck of WPI Strategy noted that a future prime minister would struggle to argue against being 'in hock' to bond markets when borrowing is set to exceed £100bn this year.
Reeves has announced a support package in response to the Iran war, including fuel duty cuts and VAT reductions, further straining the budget. Meanwhile, calls to scrap the pensions triple lock have intensified, with Tony Blair's thinktank warning it could cost an extra £85bn a year by 2070.
The OBR described the April figures as 'highly provisional', but Deputy Chief UK Economist Ruth Gregory of Capital Economics cautioned that rising gilt yields and the cost of the support package could push the deficit £32bn above official forecasts this year.
