UK Budget Deficit Running Below Forecast in Boost for Reeves

UK government borrowing came in below forecast in the first two months of the fiscal year, a modest boost for Chancellor of the Exchequer Rachel Reeves as she faces growing questions over whether she can keep to her budget limits without further tax and spending pain.

A £17.7 billion ($23.9 billion) deficit in May took the total for 2025-26 so far to £37.7 billion, the Office for National Statistics said Friday. That’s £1.6 billion higher than in the same two months a year earlier but below the £40.7 billion forecast by the Office for Budget Responsibility in March.