Overview
- Public sector borrowing totaled £132 billion for the year to March, undershooting the Office for Budget Responsibility’s forecast by about £700 million and falling to its lowest share of GDP since 2019–20.
- Following Thursday’s ONS release, officials said higher revenue did the heavy lifting as combined receipts rose 9.1% over the year, more than covering the rise in spending.
- Monthly figures were noisier as March borrowing came in at £12.6 billion, above economists’ expectations of roughly £10 billion but £1.4 billion lower than March last year.
- The Resolution Foundation warned that borrowing could be up to £16 billion higher by 2030 under a severe scenario, which would eat into the Treasury’s roughly £22 billion fiscal buffer.
- The government rejected calls for a fresh windfall tax on oil and gas profits, while pressure to raise defence spending and offer more help with high energy bills could strain the public finances.