UK borrowing already off track before the year has even started 23 April 2025 The UK borrowed £151.9 billion in the past financial year (2024-25) is significantly higher than the Office for Budget Responsibility’s forecast of £137.3 billion made last month – laying bare the Government’s fiscal challenge, the Resolution Foundation said today (Wednesday) in response to the latest ONS data. Borrowing was 5.3 per cent of national income in 2024-25 the highest such borrowing figure since 2013-14 abstracting from the spike in borrowing in 2020-21. The higher than expected borrowing figures for 2024-25 – which were almost three times larger than the OBR’s first forecast (of £57.9 billion) back in March 2020 – were driven disappointing tax receipts, which were around £8 billion lower than forecast. The latest data lays bare the fiscal challenge facing the Government and come as rising global economic uncertainty look set out to lower the UK’s growth prospects, which could put further pressure on the public finances. James Smith, Research Director at the Resolution Foundation, said: “Higher than expected borrowing over the last financial year lay bare the public sector finances challenge facing the Government. “The UK is already borrowing far more than the OBR forecast just last month, before the new financial year has even begun. And with the outlook for growth, interest rates and inflation changing considerably in the wake of heightened global economic uncertainty, Britain’s borrowing prospects could look very different by the time of the Autumn Budget.”
