| 23 May 2023

Debt interest and energy subsidies raise budget deficit

Borrowing in April 2023 of £25.6 billion was £3.1 billion above our March 2023 forecast profile – thanks to both slightly lower-than-expected receipts and slightly higher-than-expected spending – and almost double the £13.7 billion figure from a year ago. This year-on-year increase largely reflects higher inflation pushing up spending on debt interest payments (£3.1 billion higher than a year ago) and net social benefits (£4.5 billion higher). The latter, and spending on subsidies (£1.8 billion higher), were also affected by energy support schemes in the form of cost-of-living payments and energy price caps.