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Pressure builds on UK finances as Reeves pushes for US trade deal
The government borrowed more than expected last year, placing more pressure on the public finances ahead of the full impact of US tariffs.
Minister pledges 10,000 extra driving tests a month to clear backlog
Transport secretary Heidi Alexander said the government would provide at least 10,000 extra driving tests a month.
UK annual borrowing exceeds forecasts by almost £15bn in blow to Rachel Reeves
Chancellor may be forced to raise taxes or announce deeper public spending cuts in autumn budget, economists say
Rachel Reeves could be forced to raise taxes or announce deeper cuts to public spending after figures revealed UK borrowing overshot official forecasts by almost £15bn in the last financial year.
With the British economy coming under mounting strain amid Donald Trump’s escalating trade war, the Office for National Statistics (ONS) said borrowing in the financial year ending in March was £151.9bn, more than £20bn higher than in the previous financial year.
UK private sector shrinks as export orders slump; state borrowing nearly £15bn above official forecast – business live
Economists say chancellor could be forced to raise taxes or announce deeper spending cuts later this year; stocks, dollar, oil prices rise on hopes of US-China trade deal
The collapse in confidence and drop in output during April raise red flags for the economic outlook and add pressure on the Bank of England to reduce interest rates again at its May meeting, said Chris Williamson, chief business economist at S&P Global Market Intelligence.
While recent months have been characterised by UK businesses treading water, broadly stagnating since last autumn’s budget, businesses are reporting more of a struggle to keep their heads above water in April.
April’s fall in output was the largest recorded for nearly two and a half years, consistent with GDP declining at a quarterly rate of 0.3%, reflecting falling activity and demand across both manufacturing and services.