Unlock the publisher’s digest free
Roula Khalaf, editor -in -chief of the FT, selects her favorite stories in this weekly newsletter.
The British government borrowing expectations of surpassing in March and during the full financial year, in a reverse for Chancellor Rachel Reeves while the economy is faced with the impact of Donald Trump’s prices.
The deficit between government revenues and expenses was 16.4 billion pounds Sterling last month and 151.9 billion pounds sterling in 12 months to March, the Office for National Statistics announced on Wednesday.
This is compared to a deficit of 16 billion pounds sterling expected by economists for March and a forecast for the full financial year of 137.3 billion sterling pounds from the Office for Budget Response, the government’s tax guard dog.
The OBR warned last month that, despite the recent social protection cuts, the government’s “tax room” – or the budgetary room for maneuver – remains historically small at 9.9 billion pounds sterling.
The economic prospects of the United Kingdom have since deteriorated, which could exert additional pressure on tax revenue and public finances.
Like many other countries, Great Britain has been struck by Trump priceswhich include 10% of the tasks between boarding and higher levels on steel and cars.
On Tuesday, the IMF reduced its growth forecasts in 2025 for the United Kingdom to 1.1%, down compared to its previous estimate of 1.6%, warning of a generalized economic disturbance in trade tensions. It has reduced its global growth forecasts by 0.5 percentage points to 2.8%.
It’s a story in development
