“Public sector borrowing for April came in above the OBR’s March projection, largely driven by higher spending by the central government. Given the increasingly uncertain economic outlook, this could set the tone for the rest of the fiscal year.
“Growth forecasts for 2026-27 are now well below the what the OBR expected in March, as the effect of higher commodity prices creates headwinds for the UK economy. This means that public sector borrowing is likely to remain elevated in the medium term, potentially forcing the Chancellor’s hand to make more tweaks to fiscal policy at the time of the Autumn Budget.”
