UK borrowing lowest for three years but Iran war clouds outlook

uk borrowing fell £19.8bn to £132bn in the year to march — the lowest in three years and slightly below the obr's £132.7bn forecast. borrowing as a share of gdp hit 4.3%, the lowest since 2019-20. march borrowing alone was £12.6bn, above analyst expectations but still the lowest for that month since 2022. analysts don't expect the improvement to last. ruth gregory at capital economics said the full energy price shock from the iran conflict "is still to come" and predicted borrowing would rise to about £145bn this year, partly from £20bn in targeted energy support. elliott jordan-doak at pantheon economics estimated the government faces an extra £12bn in interest payments this year, and any further fiscal support would require more borrowing. shadow chancellor mel stride noted the annual deficit is "70% higher than was forecast when they came to office," adding that labour has "left britain dangerously exposed to economic shocks."