Government borrowing in April hit highest level since Covid

UK public sector borrowing last month hit the highest total for April since the Covid pandemic in 2020, highlighting the challenges facing the government. Borrowing, the difference between spending and income from taxes, was £24.3bn last month, official figures showed, which was up £4.9bn from a year earlier and higher than expected. Separate data showed retail sales volumes fell in April by the fastest pace for almost a year, after the jump in petrol prices hit demand for fuel. The latest figures "highlight the deteriorating growth outlook and fragile fiscal backdrop that will face whoever is in 10 Downing Street", said Ruth Gregory, deputy chief UK economist at Capital Economics. Office for National Statistics (ONS) chief economist Grant Fitzner said April's borrowing figure was "substantially higher" than a year earlier, with higher tax receipts being "more than offset by higher spending on benefits and other costs". Net social benefits rose by £2.7bn, which the ONS said was largely caused by inflation-linked increases to many benefits and the earnings-linked rise to the state pension. Debt interest payments hit a record high for the month of April of £10.3bn, up £0.9bn from a y