Rachel Reeves Predicts Britain's Swing from Deficit to Surplus

Finance minister Rachel Reeves forecasted a budget deficit of 26.2 billion pounds for the UK in 2025/26, with the expectation of a surplus by 2027/28. Public sector borrowing is projected to decrease significantly by 2029/30. The borrowing rate is expected to drop from 4.5% to 2.1% of GDP.

Finance Minister Rachel Reeves on Wednesday announced projections from the Office for Budget Responsibility, forecasting a UK budget deficit of 26.2 billion pounds for the 2025/26 financial year.

She anticipates this deficit will turn into a surplus of 10.9 billion pounds by 2027-28, marking a significant economic shift.

Current government borrowing stands at 127 billion pounds; however, public sector net borrowing is expected to reduce to 105.6 billion pounds by 2025-26 and further to 70.6 billion pounds by 2029-30.

(With inputs from agencies.)