UK public sector borrowing reached £24.3 billion in April 2026, marking the second highest April on record, according to new official data. The figure was £4.9 billion (25.1%) higher than in April 2025 and exceeded the Office for Budget Responsibility's (OBR) forecast of £20.9 billion by £3.4 billion.
Debt Interest Costs Rise
Central government debt interest payable increased by £0.9 billion to £10.3 billion. The rise was driven by movements in the Retail Prices Index (RPI), which added volatility to monthly debt interest costs.
Government Announces VAT Cut on Children's Meals
The government has announced a temporary reduced rate of VAT on children's menu meals in restaurants and family leisure activities over the summer, cutting VAT from 20% to 5%. This measure is expected to cost the government £300 million.
Reaction from Financial Experts
Michelle Lawson, Director at Fareham-based Lawson Financial, criticized the government's economic management. Speaking to Newspage, she said: "For a Government that ridiculed the Tories and promised that they would get back control of the economy, they’ve done the complete opposite."
She added: "Compounded by the ridiculous announcement yesterday of the £300m summer holiday savings bonanza. Labour are out of control, out of ideas, out of touch and out of time. They are doing far too much to savage the economy with failing businesses closing every day and families struggling to make ends meet. Public sentiment is being missed and the country is running into the ground."
