The UK government reported a higher-than-anticipated borrowing figure for April, totaling £20.2 billion, marking a £1 billion increase from last year. This borrowing, the fourth-highest on record for the month, results from elevated government expenditure— driven by inflation, pay hikes, and benefits—in contrast to a rise in tax receipts partly from National Insurance contributions. The overall borrowing for the last financial year is now estimated at £148.3 billion, lower than prior estimates but above the Office for Budget Responsibility's forecast, casting uncertainty on the upcoming budget amid low growth.
"After years of economic instability crippling the public purse, we have taken the decisions to stabilise our public finances, which has helped deliver four interest rate cuts since August."
"The poor start to the financial year increased the chances that more tax rises will be needed in the autumn Budget, as weaker growth is likely to hit tax receipts."
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