Tax rises now 'feel inevitable' with more borrowing to offset low economic growth

AX increases from the Chancellor later this year "feel inevitable", economists have said after UK Government borrowing jumped.

- by HENRY SAKER-CLARK

The Office for National Statistics (ONS) said public sector net borrowing rose to £20.2 billion, its fourth-highest April figure on record, mounting further pressure on Chancellor Rachel Reeves to meet her fiscal rules.

The state borrowing figure reflects the difference between Government spending and its income, largely through tax receipts. The latest figure showed that the Chancellor had to borrow more money than expected over the month, surpassing analyst predictions of £17.6bn.

It comes as Rachel Reeves seeks to meet her fiscal rule of balancing day-to-day spending with revenues by 2029-30, while improving public services and targeting accelerated economic growth.