Labour Grapples with Tory Legacy as Borrowing Surges Past Forecasts.
Britain’s public finances have taken another hit, with government borrowing for the most recent financial year reaching £151.9bn—a figure almost £15bn higher than official forecasts, and over £20bn more than last year. The numbers, released by the Office for National Statistics (ONS), underscore the scale of the challenge facing Chancellor Rachel Reeves as Labour works to repair the damage left by 14 years of Conservative economic mismanagement.
The overshoot came after borrowing in March alone hit £16.4bn, higher than both expectations and the Office for Budget Responsibility (OBR)’s projection of £16bn. This sharp rise puts pressure on Reeves, who inherited an economy weakened by austerity, missteps during Brexit, and pandemic-era spending under the Tories.
Economists have warned that Reeves might have to raise taxes or implement deeper public spending cuts to remain within her fiscal rules, rules she introduced to restore credibility after years of Conservative instability. “Public borrowing was overshooting the OBR’s forecast even before the influence from the tariff chaos is felt,” said Ruth Gregory, deputy chief UK economist at Capital Economics. “This raises the chances that if the chancellor wishes to stick to her fiscal rules, more tax hikes in the autumn budget will be required.”
It’s important to remember, however, that the current spike in borrowing is also being shaped by external shocks, including the fallout from Donald Trump’s trade war policies. Since Trump’s re-election last November, borrowing costs for governments globally have climbed, inflating the UK’s debt interest payments.
In its warning last month, the OBR highlighted that a worst-case scenario from global trade turmoil could shrink UK GDP by 1%, potentially wiping out the £9.9bn of fiscal headroom Reeves had prudently set aside.
Despite the worsening numbers, the current level of borrowing—at 5.3% of GDP—remains historically high, the eighth largest since the 2009 financial crisis. Public sector net debt now stands at 95.8% of GDP, a level not seen since the 1960s.
While critics, such as Shadow Chancellor Mel Stride, blame Labour for “eye-watering sums” and rising costs, it’s worth noting that these figures are the long-term legacy of a Conservative government that failed to invest, failed to grow the economy, and failed to manage public finances with care. Stride’s warning that “these sums are being paid for by hard-working people through higher taxes, higher prices and higher mortgage rates” conveniently ignores who set the UK on this unsustainable path in the first place.
Darren Jones, Chief Secretary to the Treasury, stood firm on Labour’s commitment to fiscal discipline: “We will never play fast and loose with the public finances, that’s why our fiscal rules are non-negotiable and why we are going through every penny of taxpayer money spent, line by line, for the first time in 17 years to tear out waste.”
He added, “We are laser-focused on making sure taxpayer money is delivering our plan for change missions to put more money in people’s pockets, rebuild the NHS and strengthen our borders.”
Conclusion - A Tough Road Ahead
Cleaning up 14 years of Tory economic failure isn’t going to be quick or easy—but Labour has already started doing the hard work. They’re making the tough decisions with the country’s long-term health in mind, not chasing short-term popularity. I believe Rachel Reeves and the Labour team have the right priorities and the right values. They’re focusing on fairness, responsibility, and restoring stability. No one should expect miracles overnight, but if anyone can fix the mess, it’s Labour. In my opinion, they’re not in this for themselves—they’re in it for the Great British public.
