Pressure Mounts on Reeves as Borrowing Surges

UK government borrowing jumped to £20.2 billion in April 2025, significantly higher than expected, placing Chancellor Rachel Reeves under growing pressure. The rise was attributed to increased public spending, particularly on benefits and public sector wages, which outpaced revenues. Despite a boost in employer National Insurance contributions introduced in the recent Budget, it wasn’t enough to offset the spending surge. The Office for National Statistics also cited higher debt interest payments and a sluggish global economy as contributing factors.

With the next spending review set for June 11, Reeves is facing calls from economists to ease the government’s tight fiscal rules. Critics argue that the current borrowing figures highlight the need for greater flexibility to invest in infrastructure and support public services. However, internal tensions within Labour, including skepticism from party leader Keir Starmer on some budget policies, are making it harder for Reeves to maneuver.

The unexpected deficit puts the spotlight on how Labour will manage the balance between fiscal discipline and economic growth. Reeves has championed a message of economic responsibility, but the current data challenges her room to act without either raising taxes or cutting spending elsewhere. As scrutiny intensifies, the decisions made in the upcoming spending review could shape both the government’s credibility and the broader public perception of Labour’s economic stewardship.