Government borrowing climbed to £24.3bn last month, the second-highest April level since records began. Borrowing was £4.9bn higher than the same month a year earlier and £3.4bn above Office for Budget Responsibility forecasts. Interest payments on government debt reached £10.3bn during the month, reflecting higher costs of servicing debt in a higher-inflation, higher-interest-rate environment. The increase was driven by higher public spending despite higher tax receipts. Ministers said borrowing and debt reduction remained on track and cited International Monetary Fund support, along with actions reducing borrowing and plans for additional capital investment. Economists warned finances remain fragile as growth stays subdued and spending pressures rise.
"Treasury ministers insisted the Government remained committed to reducing borrowing and debt over time. Lucy Rigby said the Government's fiscal strategy remained on track and pointed to support from the International Monetary Fund. She said: "We are cutting borrowing and debt, with our actions reducing Government borrowing by over £20bn last year, while driving growth through £120bn of additional capital investment over the Parliament.""
Read at London Business News | Londonlovesbusiness.com
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