Borrowing, the difference between spending and income from taxes, fell £19.8bn to £132bn in the year to March, the Office for National Statistics (ONS) said, the lowest since 2022-23.
What is confirmed: The total was slightly below the £132.7bn that had been predicted by the government's independent forecaster, the Office for Budget Responsibility. Ruth Gregory, deputy chief UK economist at Capital Economics, said the full impact from the energy price shock caused by the conflict "is still to come". Since the outbreak of the US-Israeli war with Iran, energy prices have surged due to the effective closure of the Strait of Hormuz - a key waterway with usually carries about 20% of the world's oil and liquid natural gas supplies. Last week, the International Monetary Fund (IMF) predicted the energy shock from the Iran war would hit the UK the hardest of the world's advanced economies, and cut its estimate for UK growth this year to 0.8% from its previous prediction of 1.3%.
What remains unclear: investigators or court records have not publicly filled in every detail.
Published: Thu, 23 Apr 2026 11:37:59 GMT.