UK Borrowing Surges, Public Debt at 95.5% of GDP

UK government borrowing rose to £20.2 billion in April, the fourth-highest April figure on record and above forecasts, putting additional pressure on Chancellor Rachel Reeves to reconsider her budget rules. The rise was fueled by higher public sector pay, benefits, pensions, and inflation-driven costs, outpacing gains in tax revenue. Public debt now stands at 95.5% of GDP, despite a £3.7 billion downward revision to last year's borrowing figures. Reeves faces mounting calls for wealth taxes and criticism over the prospect of future tax hikes and spending cuts. An upcoming departmental spending review is set to address skills, productivity, and workforce participation, though its effectiveness may be limited by fiscal constraints. Prime Minister Keir Starmer has indicated possible reversals of unpopular welfare cuts, further complicating fiscal decisions.