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The UK government, borrowing expectations in February, according to official figures, highlighting pressure on Chancellor Rachel Reeves as he prepares for his spring statement next week.
The lack between government revenues and spending was £ 10.7 billion last month, the National Statistics Office said. This is compared to the £ 6.5 billion forecast from the Budget Responsibility Office, the fiscal guardian of the government and a similar projection in Reuters economists research.
In the financial year until February, the deficit was 132.2 billion pounds, about £ 14.7 billion more than at the same time in the previous fiscal year.
Reeves prepares for a Spring statement It will introduce further squeeze in government consumption, as it is trying to keep public finances on the right track. The chancellor promised according to her fiscal rules for balancing the current budget, which excludes government investment, by 2029-30.
But the weak state of the economy and public finances means that OB predictions are expected to indicate that further cost limit is needed. The government has announced plans to save £ 5 billion a year and is expected to reveal freshly squeezing expenses on Wednesday.
The ratio of net government debt to GDP at the end of February was temporarily estimated at 95.5 %, ONS said, 0.1 percentage points higher than a year ago.
Darren Onesons, chief secretary of the Ministry of Finance, said: “We are refocusing the public sector of our missions and, for the first time in 17 years, going through every denar of taxpayers by line, to ensure that it helps us to secure the future of Britain through the plan.
“At the essence of this emergency mission is a healthy public finance, based on our non-negotiating fiscal rules.”
Reeves released his first budget in October with the main room against its current rule of a £ 9.9 billion deficit, but it was deleted with the increase in government borrowing costs and growth growth. The chancellor will have to show plans to rebuild that room to convince financial markets that she is keeping them public finances In order.
She insisted that posting next week would not be a major fiscal event, suggesting that tax changes are out of the table for the time being. But pressures, including the need to increase the cost of defending and repairing public services, have suggested that it could be forced to further revenue collection measures, the parliament warns.
“Cutting costs can only go so far and ban a surprise to Britain’s growth this summer, we think further tax hikes seem inevitable in the fall,” said Jamesesheims Smith, an economist at Ing.
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