UK budget deficit hits $31B in April mainly due to surging inflation

The UK faced a budget deficit of over £25 billion (nearly $31 billion) in April, £11.9 billion higher than the same month last year, marking the second-highest April borrowing since monthly records began in 1993.

Public sector borrowing rose once again due to surging inflation and the expenses associated with capping energy bills, according to the latest data from the Office for National Statistics (ONS) on Tuesday.

In March, annual consumer price inflation rate in the UK saw a slight decline to 10.1%, although it has remained higher than the Bank of England's target of 2% for nearly two years.

The ONS also said interest payable on central government debt saw £9.8 billion in the same month, £3.1 billion more than April 2022 and the highest April figure since monthly records began in 1997.

The public sector net debt at the end of April 2023 was around 99.2% of gross domestic product (GDP), with the debt-to-GDP ratio at levels last seen in the early 1960s.