UK's budget strains deepen ahead of spending review

Deficit comes in at £20 billion in April

- ANDY BRUCE

Britain's government kicked off the 2025/26 financial year in April by again borrowing more than expected, suggesting no let-up in the pressure on the public finances ahead of a major review of spending.

Public sector net borrowing was £20.155 billion ($27 billion) in April, according to official data.

A Reuters poll of economists showed a median forecast of £17.9 billion for public sector net borrowing.

Economists have routinely underestimated the extent of Britain's budget deficit each month over the past year.

Finance minister Rachel Reeves is due to deliver her first multi-year spending review on June 11 to set the budgets for public services.

She outlined her first annual tax and spending plans last October when she raised social security contributions paid by employers but held off from broader tax increases.