Last April, Britain recorded a deficit in its trade balance, so the government borrowed more than expected, as inflation led to a rise in interest payments on debt.
The latest figures from the Office for National Statistics showed that rising inflation and the cost of covering energy bills has led to an increase in borrowing again, showing that the government borrowed more than 25 billion pounds (more than 31 billion US dollars), the second highest borrowing for the month of April ever.
Borrowing was £11.9 billion (more than $14 billion) higher than in April 2022, and the second highest since monthly records began in 1993 (after April 2020, when the pandemic hit the economy).
Economists had forecast that public sector net borrowing could reach £19.75 billion in April.
“The increase in the retail price index led to an increase in the interest accrued on financial bonds linked to the index,” the Statistics Office said.
This represents the third highest interest payable in any month ever, after £20.0bn in June 2022 and £18.0bn in December 2022.
UK energy subsidy packages mean the central government spent £3.9 billion on subsidies, £1.8 billion more than in April 2022. Most of this increase is due to the cost of the Energy Rates Home Guarantee and the Rebate Scheme.
This article was originally published by RT.
