UK government borrowing was higher than expected in April, according to the latest official figures.
Borrowing – the difference between spending and tax income – was £20.2bn, up £1bn from April last year, and higher than analysts had predicted.
It was the fourth-highest April borrowing figure since monthly records began in 1993, the Office for National Statistics (ONS) said.
Tax receipts were more than £5bn higher, in part due to increases in National Insurance contributions paid by employers.
But government expenditure also rose, largely due to pay rises, higher costs due to inflation, and increases in pensions and other benefits.
The ONS also said that borrowing for the financial year that ended in March is now estimated to be £148.3bn, which is £3.7bn less than initially thought.
However, the figure is still £11bn more than expected by the UK government’s independent forecaster, the Office for Budget Responsibility.
Analysts had predicted borrowing of £17.9bn.
Reacting to the figures, Chief Secretary to the Treasury Darren Jones said: “After years of economic instability crippling the public purse, we have taken the decisions to stabilise our public finances, which has helped deliver four interest rate cuts since August, cutting the cost of borrowing for businesses and working people.”
However, Ruth Gregory, deputy chief UK economist at Capital Economics, said the “poor start” to the financial year increased the chances that more tax rises will be needed in the autumn Budget.
She said weaker economic growth forecast over the next few months is likely to hit tax receipts, adding to pressure on government finances.
“With the PM announcing a partial U-turn on the cut to winter fuel payments, the dilemma faced by the chancellor over how to deal with increased spending pressures in environment of low economic growth and high interest rates hasn’t gone away,” Ms Gregory said.
“With the markets seemingly uneasy about more public borrowing, further tax rises are starting to feel inevitable.”
