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Public sector borrowing hits £20.2bn in April: "No growth, no plan, no accountability"

ended 22. May 2025

Borrowing – the difference between total public sector spending and income – was £20.2 billion in April 2025; this was £1.0 billion more than in April 2024 and the fourth-highest April borrowing since monthly records began in 1993, according to official data published this morning. Any views on this, and the potential fallout, send them across ASAP as this story is BREAKING.

10 responses from the Newspage community

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Anita Wright
Chartered Financial Planner at Ribble Wealth Management
What's particularly concerning is that this jump comes despite a rise in net receipts, largely driven by increased employee NI contributions. In theory, that should have helped reduce the deficit—not increase it. Even more puzzling, the ONS has revised down its borrowing forecast for the year by £3.7 billion, seemingly at odds with the worsening monthly data.
This reflects a deeper structural issue: the UK is trapped in a vicious debt loop—higher borrowing drives up debt servicing costs, rising gilt yields inflate the interest burden, and the growing deficit leads to even more borrowing.
The only historical route out of such a debt spiral is sustained inflation, which silently erodes the real value of debt. But that’s hardly a strategy—it’s a policy failure disguised as a solution. Add to this the £2.5 trillion in unfunded public sector pension liabilities, which aren't even captured in the headline borrowing figures, and the message is clear: Britain is bankrupt.
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Sam Alsop-Hall
Chief Strategy Officer & Co-Founder at Clive Henry Group
£20 billion borrowed in a single month? No growth, no plan, no accountability. Labour promised stability but delivered a fiscal black hole. You don’t fix Britain by maxing out the national credit card with nothing to show for it. This isn’t economic stewardship, it’s economic sleepwalking. On the same morning Manchester United reminded the world just how far a giant can fall, it feels like the UK government is doing exactly the same.
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Gabriel McKeown
Political & Economics Writer at Sad Rabbit - Substack Newsletter
As public sector net debt climbs to levels not seen since records began, the future of the UK economy once again hangs in the balance. The latest figures paint a stark picture of the nation's fiscal health and reflect the ongoing pressures on public finances following a disastrous budget. These elevated borrowing levels underscore the government's struggle to balance spending with income amidst rising costs and economic uncertainties. This will likely necessitate difficult decisions likely rowing back many of the budget policies, with the need to rein in borrowing without stifling the economic recovery being paramount. Despite reiterating the fiscal deficit Labour inherited, Chancellor Reeves still faces the formidable challenge of addressing this financial shortfall without exacerbating the situation further. However, in a storm of rising costs and economic uncertainty, stabilising public finances is vital for reigniting rapidly depleting confidence.
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Harry Mills
Director at Oku Markets
Nobody can be surprised by yet more borrowing from this Labour government, as the gap between spending and revenue rose by £20.02bn in April, far more than economists had forecast and £6bn more than the figure for March. This was the fourth-highest April borrowing since records began in 1993. Chancellor Rachel Reeves already has little fiscal headroom, chiefly her own doing, and with a spending splurge in full force coupled with likely falling tax receipts as the wealthy leave in their droves, public debt, currently standing above 95% of GDP, will surely continue higher. The country is facing a high-tax, high-spending, high-welfare, low-productivity, and high-debt fiscal hell.
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Riz Malik
Independent Financial Adviser at R3 Wealth
UK PLC is struggling to balance the books after yesterday’s higher than expected inflation print. This could shake market confidence and keep interest rates higher for longer. Good news for savers, less so for borrowers.
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Craig Fish
Director at Lodestone Mortgages
Another broken promise from this Government. “No more tax hikes,” they said. Yet here we are staring down the barrel of another tax grab. Borrowing’s through the roof, and instead of building a financial buffer, they’re looking to raid the pockets of hard-working taxpayers. Landlords could well be first in the firing line, with rumours of National Insurance demands back on the table. How much more can people take? Instead of tackling spending inefficiencies, the Government seems fixated on squeezing more out of those already contributing the most. Something has to give.
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Tony Redondo
Founder at Cosmos Currency Exchange
The UK’s fiscal credibility is on thin ice after ONS reported April 2025 public sector borrowing at £20.2bn, the fourth highest since 1993. Driven by soaring debt interest and public service costs, this £1bn rise from last year highlights a persistent spending-revenue gap. With debt at 95.8% of GDP, markets may demand higher borrowing costs, threatening sustainability. Chancellor Reeves faces pressure for tax hikes or spending cuts, risking public services and growth. High inflation and interest rates could exacerbate debt servicing woes. Without structural reforms and spending efficiency, eroding public and private sector confidence may push the UK toward a debt spiral.
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Scott Gallacher
Director at Rowley Turton
April’s £20bn deficit is yet more bad news for Rachel Reeves — and for the country. Despite higher taxes and a much-heralded growth agenda, things seem to be getting worse, not better. Let’s hope the UK’s new trade deals with India and the EU start delivering — and soon. Otherwise, we risk entering a vicious economic spiral, where rising debt drives rising taxes, choking growth, investment and confidence in the process.
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Kundan Bhaduri
Entrepreneur, Investor and Landlord at The Kushman Group
Labour's economic honeymoon has ended with a resounding thud as April's borrowing figures hit £20.2bn, the fourth-highest April since records began and £1bn more than last year's already eye-watering sum. With public debt now at an astonishing 95.5% of GDP, one wonders if the Treasury has simply misplaced its calculator. The FYE March 2025 borrowing exceeded OBR forecasts by a staggering £11bn, suggesting either remarkable incompetence or deliberate fiscal recklessness. While the previous government had at least gestured towards post-pandemic belt-tightening, Labour appears determined to treat the nation's finances like a particularly generous overdraft facility. Most concerning is the £13.9bn borrowed simply to fund day-to-day spending, something that's not long-term investment but essentially putting the weekly shop on credit. The markets, initially willing to give Labour the benefit of the doubt, are growing restless. The Great British Budget Blowout is on full show.
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David Belle
Founder and Trader at Fink Money
We are in a crisis situation, and I do not say that lightly. Back in January I put up a post on X saying 'if you like the 30y yield at 5.4%, then you'll love it at 7.5%.' 4 months and two rate cuts later, the UK 30y yield is at 5.51%. Of course, this isn't all down to Labour -- global yields are rising. But when you look at the yield spread versus, say, the 30y treasury, it's currently at 50bps. That means the 30y gilt is priced a full half percent higher than US debt, and that's after a downgrade by Moody's on Friday. What's most worrying is the solution Labour will pull out for this is higher taxes, rather than doing anything growth positive, because our political institutions are utterly clueless. One thing they could do to completely nullify this borrowing is to get rid of the treasury's indemnity on the Bank of England APF, but I don't even think Rachel Reeves knows what that is. You'd free up £10-15bn overnight.