Data from the UK's Office for National Statistics shows that the net borrowing of the public sector for the fiscal year 2024/25 has reached £151.9 billion (approximately HK$1.6 trillion), significantly exceeding expectations and placing greater pressure on the UK's finances.
On Wednesday (April 23), the UK's Office for National Statistics reported that the budget deficit for 2024/25 accounts for 5.3% of GDP, up from 4.8% in the previous fiscal year. This year's budget deficit is £15 billion higher than the forecast from the Office for Budget Responsibility.
Reuters analysis indicates that this substantial budget deficit has significantly increased market attention on public finance data. In recent years, fluctuations in UK government bonds have intensified, reflecting market concerns about low growth, high debt interest costs, and persistent inflation.
The Association of Chartered Certified Accountants stated that the corporate tax increases implemented this month are theoretically expected to improve public finances, but current economic headwinds and global trade tensions will create new pressures on the UK treasury.
The UK's Debt Management Office plans to address the 2024/25 fiscal year deficit by issuing more treasury bills instead of medium- to long-term government bonds. Analysts believe that the UK government will need to adopt further fiscal measures in the future, such as cutting spending or increasing taxes, to improve the public finance situation.
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