The government borrowed more than expected in the year to March, according to official figures.
Borrowing, the difference between spending and income from taxes, came in at £151.9bn, up £20.7bn from the year before, according to the Office for National Statistics (ONS).
The amount borrowed was higher than the £137.3bn predicted by the UK’s official forecaster, the Office for Budget Responsibility. The ONS said borrowing rose to £16.4bn last month, the third-highest amount for March since monthly records began.
Chief secretary to the Treasury, Darren Jones, said: “Economic stability is crucial within a changing world. We will never play fast and loose with the public finances, that’s why our fiscal rules are non-negotiable and why we are going through every penny of taxpayer money spent, line by line, for the first time in 17 years to tear out waste.
“We are laser-focused on making sure taxpayer money is delivering our Plan for Change missions to put more money in people’s pockets, rebuild the NHS and strengthen our borders.”
The OBR warned last month that, despite recent welfare cuts, the government’s fiscal headroom remains historically small at £9.9bn.
On Tuesday, the IMF cut its 2025 growth forecast for the UK to 1.1%, down from its previous estimate of 1.6%, warning of widespread economic disruption from trade tensions.
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