What's happened
UK government borrowing for the last financial year surpassed forecasts, reaching £120.7bn, limiting potential tax cuts by Chancellor Jeremy Hunt. Borrowing in March alone was £11.9bn, higher than expected.
Why it matters
The higher-than-expected government borrowing in the UK limits the scope for tax cuts, impacting the economy and potentially influencing the upcoming general election. Chancellor Jeremy Hunt faces challenges in managing finances and potential tax policies.
What the papers say
The Office for National Statistics reported that UK government borrowing exceeded forecasts, impacting Chancellor Jeremy Hunt's potential tax policies. While some experts believe tax cuts may still be pursued, others suggest limited fiscal 'headroom' for such measures.
How we got here
The UK government's borrowing for the last financial year was higher than predicted, with increased spending on public services and benefits contributing to the deficit. The figures may influence economic policies and tax decisions ahead of the general election.
Common question
More on these topics
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The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom or Britain, is a sovereign country located off the northwestern coast of the European mainland.
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Jeremy Richard Streynsham Hunt is a British politician serving as Member of Parliament for South West Surrey since 2005. A member of the Conservative Party, he served in the Cabinet from 2010 to 2019, most recently as Foreign Secretary from 2018 to 2019.
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The Office for Budget Responsibility is a non-departmental public body funded by the UK Treasury, that the UK government established to provide independent economic forecasts and independent analysis of the public finances.
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Ruth Ann Watson Gregory is a British mathematician and physicist, currently Professor of Mathematics and Physics at the University of Durham. Her fields of specialisation are general relativity and cosmology.
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A treasury is either
A government department related to finance and taxation, a finance ministry.
A place or location where treasure, such as currency or precious items are kept.
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The Office for National Statistics is the executive office of the UK Statistics Authority, a non-ministerial department which reports directly to the UK Parliament.