Politics

Rachel Reeves Under Fire as Government Borrowing Soars and Critics Say Spending is Out of Control

Published on May 23, 2025

Rachel Reeves is facing a wave of criticism after the Government’s borrowing figures for April showed a sharp rise, with many pointing the finger at her public spending drive.

According to the latest data from the Office for National Statistics, public sector borrowing hit £20.2 billion last month — that’s a billion more than the same time last year and far higher than the £17.6 billion analysts had predicted. It’s also the fourth-highest April borrowing figure since records began over 30 years ago, reported the Express.

Much of the increased spending has been tied to hikes in public sector pay, national insurance contributions, and uprated benefits and pensions moves Reeves has defended as essential to support households and improve public services.

But not everyone’s convinced. Shadow Chancellor Mel Stride didn’t hold back, accusing Reeves of blowing the budget and bending the rules. “The latest borrowing figures expose the true cost of Labour’s reckless economic policies,” he said. “Instead of reining in spending, the Labour Chancellor has piled billions onto the national debt by fiddling the fiscal rules and maxing out the national credit card.”

He warned that this spike in borrowing adds even more pressure to the national debt and risks wasting taxpayer money on interest payments, calling the trend deeply worrying.

ONS deputy director Rob Doody explained what’s behind the figures: “At £1 billion higher than the same time last year, this April’s borrowing was the fourth highest for the start of the financial year since monthly records began. Receipts were up on last April, thanks partly to the higher rate of national insurance contributions. However, this was outweighed by greater spending, due to rising public services’ running costs and increases in many benefits and state pensions.”

April also saw a notable increase in social benefit payments, which rose by £1.3 billion to £26.8 billion, driven largely by inflation-linked increases across several key support schemes. Public sector net debt now stands at 95.5% of the UK’s GDP, up 0.7 percentage points from last year levels not seen since the early 1960s.

Despite the backlash, Chief Secretary to the Treasury Darren Jones defended the Government’s direction. “After years of economic instability crippling the public purse, we have taken the decisions to stabilise our public finances,” he said. Jones also highlighted recent interest rate cuts and said they were already making borrowing cheaper for both households and businesses.

He added: “We’re fixing the NHS, with three million more appointments to bring waiting lists down, rebuilding Britain with our landmark planning reforms and strengthening our borders, delivering on the priorities of the country through our Plan for Change.”

Reeves is under pressure to stick to her fiscal rule balancing day-to-day spending with income by 2029-30 while still funding the improvements Labour has promised. But with borrowing already running higher than expected and the clock ticking, critics are questioning how sustainable her plan really is.

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