BORROWING hit £24 billion last month in the second highest for April on record as experts warn Labour is being “fiscally irresponsible”.
Borrowing – the difference between total public sector spending and income – was £24.3 billion in April 2026, £4.9 billion (25.1%) more than in April 2025, and £3.4 billion more than the £20.9 billion forecast by the Office for Budget Responsibility (OBR), new data shows.
Central government debt interest payable increased by £0.9 billion to £10.3 billion, with movements in the Retail Prices Index (RPI) adding volatility to the monthly debt interest costs.
This comes as the government announced a temporary reduced rate of VAT on children’s menu meals in restaurants and family leisure activities over summer, cutting VAT from 20% to 5%.
This is expected to cost the government £300 million.
Experts have criticised Labour for allowing borrowing to rise so high, with one calling it “fiscally irresponsible”.
These figures matter because ordinary people ultimately pay the price
Michelle Lawson, Director at Fareham-based Lawson Financial, said Labour does not have the economy under control.
She added: “For a Government that ridiculed the Tories and promised that they would get back control of the economy, they’ve done the complete opposite. 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.”
Martin Rayner, mortgage broker and financial adviser at Compton Financial Services, said the impact is real for households.
He added: “These figures matter because ordinary people ultimately pay the price. Higher government borrowing increases pressure for future tax rises, while inflation and debt costs keep mortgage rates, rents and borrowing costs higher for longer. Households are being squeezed from every direction at once.
“The current approach increasingly seems to be plugging gaps through higher taxation, much of it falling on businesses. That may help short term Treasury receipts, but it risks slowing investment, hiring and wider UK growth. For households, the impact is real. Higher mortgage costs, rising rents, council tax increases and persistent inflation all eat into disposable income.
“Many people feel like they are running harder each year just to stand still financially. There is also a growing risk to jobs. As business costs rise further, some firms will cut back while others fail altogether, leading to higher unemployment, rising welfare costs and even slower economic growth.”
They tend to show up later through higher taxes
Scott Gallacher, Director at Leicester-based Rowley Turton, questioned whether the UK can afford to borrow so much money.
He added: “Today’s deficit figures, coming just a day after Rachel Reeves announced a £300m summer VAT giveaway, show that Labour is not immune to putting short-term political wins ahead of long-term financial discipline.
“Families will understandably welcome cheaper days out, but the wider question is whether the country can afford gestures like this when borrowing is already running ahead of forecast and debt interest costs remain painfully high. For households and businesses, weak public finances do not stay abstract for long.
“They tend to show up later through higher taxes, tighter public spending, or more pressure on borrowing costs. If fiscal maturity was meant to be one of this government’s strongest selling points, this episode makes that claim harder to sustain.”
Steven Greenall, Mortgage and Protection Advisor at Dunmow-based Protect & Lend, simply added: “Fiscally irresponsible, simple.”
Photo by Mitchel Lensink on Unsplash.
