The Government borrowed £151.9 billion in the year to March, up £20.7 billion from the previous year, raising concerns about the nation’s financial stability. The figures, revealed as Rachel Reeves visits Washington to negotiate a trade deal with the USA, come amid mounting pressure to cut public spending or increase taxes in order to meet her strict borrowing rules. Reeves has insisted that borrowing will not fund daily spending, but economists warn that sluggish growth, rising interest rates, and looming US tariffs could force her hand. Economists predict tax hikes may be necessary, especially if a trade agreement with the USA cannot be reached. Meanwhile, the IMF downgraded the UK’s 2025 growth forecast from 1.6% to 1.1%, citing inflation, borrowing costs, and trade disruptions. Despite higher tax revenues, debt interest rose to £4.3 billion in March, the highest since the 1960s. Both political and economic leaders are scrutinising every area of government spending, while critics blame the borrowing spike on poor fiscal management and short-sighted policies.