UK Successfully Reduces Deficit; Experts Warn Middle East War Could Push Up Borrowing Costs
Official UK data shows the budget deficit shrank to 4.3% of GDP. However, analysts warn that the war in the Middle East could disrupt this progress, driving up borrowing costs and reigniting inflation.
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- 📰 Published: April 23, 2026 at 21:50
- 🔍 Collected: April 23, 2026 at 22:02 (11 min after Published)
- 🤖 AI Analyzed: April 23, 2026 at 23:10 (1h 8m after Collected)
US-Iran War Key News
(Central News Agency, London, 23rd, Comprehensive Foreign Dispatch) Official UK data shows authorities have reduced the government deficit over the past 12 months ending in March, but analysts warn that the war in the Middle East could drive up government borrowing costs.
According to AFP, the Office for National Statistics (ONS) announced today that the UK's budget deficit for the 2025-2026 fiscal year was 4.3% of its gross domestic product (GDP), the lowest since the 2019-2020 fiscal year before the COVID-19 pandemic broke out. The deficit for the 2024-2025 fiscal year was 5.2%.
Tom Davies, a senior statistician at the ONS, stated that as increased government tax revenues offset higher spending, "borrowing was about £20 billion (roughly NT$852.2 billion) less than the previous financial year."
Danni Hewson, head of financial analysis at investment firm AJ Bell, said, "This is good news for the government. The amount they needed to borrow last year was slightly lower than expected, and significantly down from the previous year."
However, Hewson pointed out, "The war in Iran has severely disrupted original plans, not only pushing up government borrowing costs but also triggering a resurgence in inflation." (Translator: Kao Chao-fen / Editor: Hung Chi-yuan) 1150423
(Central News Agency, London, 23rd, Comprehensive Foreign Dispatch) Official UK data shows authorities have reduced the government deficit over the past 12 months ending in March, but analysts warn that the war in the Middle East could drive up government borrowing costs.
According to AFP, the Office for National Statistics (ONS) announced today that the UK's budget deficit for the 2025-2026 fiscal year was 4.3% of its gross domestic product (GDP), the lowest since the 2019-2020 fiscal year before the COVID-19 pandemic broke out. The deficit for the 2024-2025 fiscal year was 5.2%.
Tom Davies, a senior statistician at the ONS, stated that as increased government tax revenues offset higher spending, "borrowing was about £20 billion (roughly NT$852.2 billion) less than the previous financial year."
Danni Hewson, head of financial analysis at investment firm AJ Bell, said, "This is good news for the government. The amount they needed to borrow last year was slightly lower than expected, and significantly down from the previous year."
However, Hewson pointed out, "The war in Iran has severely disrupted original plans, not only pushing up government borrowing costs but also triggering a resurgence in inflation." (Translator: Kao Chao-fen / Editor: Hung Chi-yuan) 1150423