Debt costs push UK borrowing higher than expected

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City of London finance districtImage source, Getty Images

The UK government borrowed more than expected last month, with inflation pushing up interest payments on debt partly to blame.

Borrowing, the difference between spending and tax income, reached £25.6bn in April, £11.9bn more than for the same month last year.

The costs of energy support schemes and increases in benefit payments were also behind the increase.

It was second-highest borrowing figure for April since records began in 1993.

Chancellor Jeremy Hunt said it was "right we borrowed billions to protect families and businesses against the impacts of the pandemic and Putin's energy crisis".

"But debt and borrowing remain too high now - which is why it's one of our priorities to get debt falling.

"We've taken difficult but necessary decisions to balance the nation's books, and if we stick to our plan and get our economy growing, then debt is set to fall."

The latest borrowing figures from the Office for National Statistics (ONS) come the day before the release of monthly inflation figures which are expected to show the rate falling below 10% for the first time since last July.

The ONS also revised down its estimate for last year's borrowing to £137.1bn, a drop of £2.1bn.

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