UK borrowing fourth highest on record as tax take rockets to £50bn

UK borrowing fourth highest on record as tax take rockets to £50bn

Last month UK borrowing hit its fourth highest figure on record.

The government borrowed £18.6 billion.

This marks £7.6 billion more than pre-pandemic borrowing levels in April 2019.

However the figure is £5.6 billion less than that for April 2021.

The Office for National Statistics (ONS) reported that tax made up £50.2 billion of the government £70.2 billion receipts-an increase of £5.5 billion.

However interest payments on government borrowing stood at £4.4billion in the same month, £4.9billion less than last April.

UK National Debt

These payments could potentially climb however, as the Retail Prices Index continues to climb.

Chancellor Rishi Sunak said in light of the news: “While we are doing what we can to help families deal with rising prices, inflation is also pushing up our spending on debt interest – which is expected to reach £83billion this year.

“We must take a balanced and responsible approach to support people now, while also not burdening future generations, and we’re on track to drive public debt down by 2024-25.”

Responding to the ONS’S new figures, John O’Connell, chief executive of free market campaign group the TaxPayers’ Alliance, said: “These figures lay bare the economic headroom to support Brits struggling with a cost of living crisis.

“Taxpayers are crying out for immediate action, and the increasing tax take gives the chancellor the opportunity to press ahead with much needed tax cuts.

“If the government wants to boost growth and help households, they can deliver both right now by bringing forward the planned income tax cut.”