Hopes were rising last night that Britain could avoid hefty post-Covid tax rises as the reopening economy helps repair our battered finances.
The Government did still borrow £31.7billion last month as the cost of the pandemic rose – making it the second highest April borrowing figure on record and pushing debt to a 60-year high, according to the Office for National Statistics.
But that sum was £15.6billion smaller than the figure borrowed in April last year and is below the £39billion predicted by the Office for Budget Responsibility just two months ago.
Analysts said that if borrowing continues to fall, Chancellor Rishi Sunak may not need big tax rises or spending cuts to bring finances back under control
SHARE
UK public sector borrowing showed its first annual fall since the start of the pandemic in April, dropping to £31.7 billion ($45.01bn) as parts of the economy reopened from a third lockdown.
Government borrowing was down from the £47.3bn registered in April last year when the first Covid-19 shutdown hammered the country’s public finances, according to the Office for National Statistics, however the figure was still the second highest for April since records began.
Read More
Chancellor of the Exchequer Rishi Sunak said the government will continue its package of support to help businesses and workers “get back on their feet”.
Experts are warning that inflation rates are starting to soar, as the Bank of England aims to keep inflation at two per cent to encourage growth all while maintaining the stability of the pound.
UK inflation rate doubles in April to 1.5% as energy bills and clothes prices push up cost of living thisismoney.co.uk - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thisismoney.co.uk Daily Mail and Mail on Sunday newspapers.