<div id="readability-page-1"><div> By Paul Hannon <pre></pre> The U.K. government narrowed its budget deficit for the fiscal year that ended at the start of April, but further progress in reducing borrowing is likely to be challenging if the conflict in the Middle East is prolonged. As elsewhere, the Covid-19 pandemic was extremely costly for the government, which has struggled to reduce the gap between spending and revenues after an initial drop as the economy reopened. However, the Office for National Statistics said Thursday the budget deficit narrowed to 4.3% of gross domestic product from 5.2% in the previous fiscal year. That was in line with the government's expectations. It was the smallest deficit since the fiscal year ending 2020, before the outbreak of the pandemic. The narrowing included a drop in borrowing during March to 12.6 billion pounds ($17.01 billion) from 14 billion pounds a year earlier. For the year as a whole, borrowing totaled 132 billion pounds, down from 151.9 billion pounds. The deficit narrowed despite a rise in interest payments to 97.6 billion pounds from 85.4 billion pounds, the second-highest amount on record. As a result of the additional borrowing, the government's net debt rose to 93.8% of GDP from 93.2%, staying around levels last seen in the early 1960s, when the debts accumulated during World War II were still being repaid. The Office for Budget Responsibility projected a further decline in the deficit to 3.6% of economic output in the current fiscal year. But that now seems unlikely, since the surge in energy prices that followed the Iran conflict is likely to slow economic growth and reduce tax revenues. The government has already announced a small package to help some households immediately disadvantaged by the rise in energy prices, and is likely to do more if the disruption is sustained. The ONS said revenues from a tax on fuels such as gasoline fell in March to its lowest level since July 2023, an indication that Britons are cutting back on purchases in response to higher prices. Hopes for a decline in borrowing over coming years had led to a gradual fall in yields on U.K. government borrowing following the November budget, which saw a fresh set of tax rises. However, yields have surged as the war in the Middle East has dragged on, partly reflecting expectations that inflation and the Bank of England's key interest rate will be higher than previously anticipated. Over time, that could add to the already high cost of paying interest on the government's debts. The current government and its predecessor have found it difficult to lower borrowing costs. That is partly because of the high cost of providing support to households as energy prices surged in the wake of Russia's 2022 invasion of Ukraine, and also due to the higher cost of borrowing that followed a bond-market crash triggered by then-Prime Minister Liz Truss' surprise tax cuts later that year. Treasury chief Rachel Reeves has pledged to cut borrowing and announced a series of tax rises and spending cuts that have contributed to her government's slide in the opinion polls. The threat of a fresh rise in borrowing if the conflict in the Middle East proves long-lasting helps explain the frustration that Reeves expressed during the spring meetings last week of the International Monetary Fund in Washington D.C. &#34;I feel very frustrated and angry that the U.S. went into this war without a clear exit plan, without a clear idea of what they were trying to achieve,&#34; she told the U.K.'s Mirror newspaper. <pre></pre> Write to Paul Hannon at paul.hannon@wsj.com <pre></pre> (END) Dow Jones Newswires April 23, 2026 03:28 ET (07:28 GMT)Copyright (c) 2026 Dow Jones &amp; Company, Inc.</div></div>

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英國政府報告稱，其預算赤字為疫情以來的最低水平，截止到四月的財政年度赤字縮小至佔 GDP 的 4.3%，低於前一年的 5.2%。儘管借款有所減少，但由於利息支付上升和中東衝突可能導致的經濟放緩，仍面臨挑戰。政府預計本財政年度赤字將進一步下降至 3.6%，但這可能受到能源價格上漲和税收收入減少的阻礙。財政部長 Rachel Reeves 承諾在公眾不滿加劇的情況下削減借款

U.K. Budget Deficit Was Smallest Since Pandemic — Update

- 英國財政赤字在截至四月初的財年縮小至 4.3% 的 GDP。  
- 儘管借款減少，但能源價格飆升或將影響未來赤字改善。  
- 政府已開始援助部分受影響家庭，未來可能需更多措施。

英國的預算赤字是自疫情以來最小的一次——更新