The UK government borrowed April expectations, highlighting the challenges of Rachel Reeves to fix public services and develop the economy while complying with her fiscal rules.

The Office for National Statistics (ONS) said that as the Prime Minister pressured the Labor tax plan, net public sector borrowings rose to £202.2 billion in April, a billion higher than last month, with April borrowing figures dating back to 1993. Urban economists' borrowing forecast is 17.9.9.9.9bn.

In the first month of the new fiscal year, the figures come after Reeves announced an increase in employment tax in the fall budget, which was issued in April.

"The receipt was a receipt from last April, partly due to higher rates of national insurance contributions. However, this far outweighs more expenses due to higher operating costs for public services, multiple benefits and state pensions," said Rob Doody, deputy director of finance for ONS public sector.

The Prime Minister faces growing problems with her tight control of public finance ahead of next month’s comprehensive spending review, which will outline the department’s budget until the end of the current parliament in 2029.

Deputy Prime Minister Angela Rayner on Wednesday urged Reeves to consider a series of wealth taxes in his spring statement last month to boost more income to avoid the need for in-depth benefits.

Last month the Prime Minister announced cuts on illness and disability benefits and reduced public spending cuts to help rebuild a £9.9 billion headroom for her main fiscal target.

ONS said it has lowered its borrowing estimates for fiscal 2024-25 by £3.7 billion. Total borrowing for the last fiscal year was £137.3 billion, £11 billion higher than the Budget Responsibility Office’s forecast.

Keir Starmer also confirmed late Wednesday that his government would relax eligibility rules for paying winter fuel to pensioners for pensioners, amid pressure from disappointing local elections.

After opposing the decision to measure test benefits, the Prime Minister suggested that a strong economy would help alleviate pressure on public finances and allow the government to partially reverse its position.

But Reeves will face challenges in managing public finances as businesses face growing uncertainty amid Donald Trump’s increasingly volatile global trade war.

The Office of Budget Responsibility, an independent Treasury regulator, warned that the worst case scenario could reduce UK GDP by as much as 1% and wipe Reeves' headroom.

According to the latest snapshot, net debt in the public sector (the sum of annual borrowing figures) is estimated to account for 95.5% of GDP, one of its highest levels since the 1960s.