London, May 23, 2024 – The UK budget deficit rose to £20.5 billion in April, one of the highest monthly deficits on record. This was £1.5 billion worse than April last year and above the forecasts of economists and the Office for Budget Responsibility (OBR). This is a worrying development for Prime Minister Rishi Sunak and Chancellor Jeremy Hunt, who are planning further tax cuts.
Details:
- April deficit: £20.5 billion (4th highest since 1993)
- April 2023 deficit: £19 billion
- Expected April 2024 deficit: £19.3 billion (economists and OBR)
- Revised deficit for fiscal year 2023/24: From £120.7 billion to £121.4 billion (4.5% of GDP)
- Expected deficit for fiscal year 2024/25: £87.2 billion (3.1% of GDP)
- Public debt in April 2024: 97.9% of GDP (up 2.5% from April 2023)
Additional notes:
- The UK government is currently planning to cut taxes in the next few years. However, the higher-than-expected deficit could make it more difficult to do this without increasing the national debt.
- The Bank of England is also raising interest rates in an effort to combat inflation. This could make it more expensive for the government to borrow money, which could further strain the public finances.
- The UK economy is expected to grow slowly in the coming years. This could also make it more difficult for the government to reduce the deficit.
Sources:
- Office for National Statistics (ONS) UK
- Office for Budget Responsibility (OBR) UK
