Andy Burnham latest: Manchester mayor to launch Makerfield by-election campaign as Starmer vows to back him – UK Times

Friday’s borrowing figures will come as a blow to Rachel Reeves, as the Chancellor is facing the twin threat of soaring inflation and slowing economic growth caused by the Iran war.

She is also looking to support households and businesses through the cost crunch at a time when public finances are already under strain.

The ONS said borrowing for the financial year to March was revised down by £3 billion to £129 billion – down 15 per cent or £22.8 billion on the previous year – due to “regular updates to our central government data”.

Public sector net debt stood at £2.94 trillion, or 94.2 per cent of gross domestic product, in April, which was 0.5 percentage points more than a year ago and remains at levels last seen in the early 1960s.

Grant Fitzner, ONS chief economist, said: “Borrowing this month was substantially higher than in April last year and although receipts increased compared with April 2025, this was more than offset by higher spending on benefits and other costs.

“Borrowing for the latest full financial year was revised down slightly, and on a comparable basis remains the lowest since the year ending March 2020.”

It is almost as if the chancellor is worried that her job is at risk in the reshuffle that might follow if Andy Burnham wins the Makerfield by-election. Hence the giveaways: the freeze on fuel duty extended; cheaper imported food; and the “Great British Summer Savings – funded by the UK government”.

This is a Treasury-branded campaign that looks like “Eat Out to Help Out”, offering a VAT cut on children’s meals in restaurants, children’s tickets for theatres and cinemas, and tickets for everyone to attractions like soft play, adventure centres, and theme parks. Plus free buses for children in August across England.

Read the full analysis from John Rentoul here:

Business Secretary Peter Kyle has said he agrees with MPs warning Ofcom is “not up to the job”.

Speaking on BBC Breakfast, Mr Kyle said “the service has not been good enough” and the regulator needs to “up its game”.

Asked whether he agreed with MPs that Ofcom is “not up to the job”, he said: “Yes, Ofcom need to do better.

“I don’t want to give the impression that I’m sort of prevaricating on this. I’ve thrown myself into this.

“All of the parties responsible need to do better. We’ve seen the two main protagonists in this, the Royal Mail owner and the workforce coming together to solve what were intractable problems before, and have now come to a deal which will hopefully go through.

“The regulator, too, needs to do better. Everyone has got to improve in order for the postal service to survive in really difficult circumstances. Competition and disruption in the delivery service has been profound, and I want to look into that market going forward to see that there is a real role for Royal Mail, and that’s a commitment I’ve made to the workforce as well, and to the owner.”

The business secretary has said that “a lot of circumstances” over the last few weeks in the Labour Party were “shocking” after Wes Streeting quit as health secretary and called for Sir Keir Starmer to resign.

Peter Kyle had previously insisted that Mr Streeting had no plans to challenge Sir Keir Starmer.

Asked whether his decision to quit took him by surprise, the business secretary told Sky News: “A lot of circumstances in that moment were shocking, because we were in a convulsive period of our politics.

“The Labour Party was convulsed by what happened in those elections. It was a stark message.”

He added: “But look how we’re responding? This week alone, we’ve hit the highest growth rate in the G7. The small boats arriving into our country have fallen by a third in a year. Overall net migration into Britain fallen two thirds since its peak.”

Peter Kyle suggested the government will provide targeted support with energy bills in the autumn, but refused to guarantee to provide support.

Asked whether the government can commit to providing energy bill support amid spiralling oil prices as a result of the war in the Middle East, the business secretary told Sky News: “The chancellor has already said that we’re looking very closely at the energy costs as they emerge into the autumn… What we’re not going to do is make the mistakes of Liz Truss, because she spent 100 billion pounds and we haven’t even paid off her package yet in terms of the debt she racked up.

“But we will be looking, and we are looking incredibly closely about where those challenges will emerge, how we can do so in a targeted and cost-effective way, but also in a way that is not adding to the inflationary problems, which of course lasted for a long time after the Liz Truss intervention.”

A government minister has insisted that the EHRC’s guidance on the Supreme Court ruling on biological sex will be “quite easy to adapt to”, arguing that “most businesses will find it quite straightforward”.

It comes despite trans campaign groups arguing the law has been left a “mess” by the guidance.

“The guidance, I think, is quite sensitive. It’s very common sense, and it won’t affect the vast majority of businesses, because they will already conform.

“There will already be facilities which are conforming. In those areas where they’re not, I think the majority of changes will be quite light touch, such as signage.

“So, I think it’s going to be quite easy to adapt to, and I think the guidance is quite long guidance, but I think most businesses will find it quite straightforward.”

In response to the UK’s borrowing figures, chief secretary to the Treasury, Lucy Rigby, said: “Earlier this week the International Monetary Fund agreed we had the right economic plan to reduce the deficit.

“We are cutting borrowing and debt – with our actions reducing government borrowing by over £20 billion last year – while driving growth through £120 billion of additional capital investment over the Parliament.

“Working families have benefited from falls in inflation and cuts to interest rates – and our non-negotiable fiscal rules will be all the more important to continue to protect them as we face the consequences of the war that we have played no part in.”

UK Government borrowing jumped to a higher-than-expected £24.3 billion last month, marking the second highest April level on record, according to official figures.

The Office for National Statistics (ONS) said borrowing was a quarter higher, or £4.9 billion, than a year earlier.

It was also £3.4 billion more than the £20.9 billion forecast by the UK’s independent fiscal forecaster, the Office for Budget Responsibility (OBR).

The latest figures showed interest costs on government debt hit £10.3 billion – a record April high and £900 million more than a year ago.