UK borrows bigger-than-expected 24.3 billion pounds in April

LONDON - Britain's public finances showed a deficit of 24.3 billion pounds ($32.63 billion) last month, the second-highest borrowing for April on record, official figures showed on Friday.

A Reuters poll of economists had pointed to a 20.9 billion-pound deficit for the month, the first of the financial year.

Britain's budget forecasters said in early March they expected public sector borrowing to shrink to 3.6% of gross domestic product in the 2026/27 tax year. That would be the smallest deficit since before the COVID-19 pandemic.

However, the Iran war has raised the risk of an economic slowdown which would hurt tax revenues and has added to demands on finance minister Rachel Reeves for more public spending to protect households and businesses from the energy price shock.

Reeves said on Thursday that she would raise more tax from oil and gas companies to fund support measures.

Investors are also nervous about the possibility of a change in political leadership in Britain with many Labour lawmakers demanding Prime Minister Keir Starmer stand down. His most likely successor, Manchester mayor Andy Burnham, has said he would stick with the fiscal rules being pursued by Reeves.

($1 = 0.7448 pounds)

(Writing by William Schomberg)

Copyright Reuters or USA Today Network via Reuters Connect.

This story was originally published May 21, 2026 at 11:06 PM.