UK borrows more than forecast in April as inflation adds to benefits bill

Key points

• The UK borrowed more than expected in April as high inflation drove up the cost of pensions and benefits, amid concern over the Iran war and political uncertainty adding to debt costs.
• The Office for Statistics (ONS) said public sector net borrowing – the difference between government spending and income – was £24.3bn in April 2026, £4.9bn higher than in April 2025. Amid bond market jitters over the Middle East conflict and a Labour leadership challenge, the figure was £3.4bn higher than forecast by City economists and the Office for Budget Responsibility.
• Rising borrowing costs on financial markets drove the UK’s debt interest payments to £10.3bn in April, £900m more than a year ago and the highest in any April on record.
• Grant Fitzner, the ONS chief economist, said: “Borrowing this month was substantially higher than in April last year and although receipts increased compared with April 2025, this was...