Rachel Reeves blows £60bn hole in Britain's finances with out-of-control borrowing

Rachel Reeves blows £60bn hole in Britain's finances with out-of-control borrowingEye-watering overspend driven by a rising welfare bill that has ballooned out of control Share Article Share Article Facebook X LinkedIn Reddit Bluesky Email Copy Link Link copied Bookmark Add us as preferred source Comments By Aaron Newbury, Political Correspondent 14:01, Wed, Jun 3, 2026 Rachel Reeves has been blasted for borrowing more than predicted (Image: Getty)Rachel Reeves has blown a £60billion hole in Britain's finances by borrowing far more than the country's own spending watchdog predicted. The eye-watering overspend was driven by a rising welfare bill, which critics say has ballooned out of control. window.scriptsToLoad.push({url:'https://live.primis.tech/live/liveView.php?s=118222&vp_content=plembed3a6btjknzwqh&cbuster=%%CACHEBUSTER%%&playerApiId=v118222',triggeredBy:'tcfLoaded',delay:1500,containerId:'ovp-primis',title:"Primis player",beforeLoad:()=>{window.top.addEventListener('primisPlayerInit',e=>{try{if(e.detail&&e.detail.playerApiId==="v118222"){if(window.document.getElementsByClassName('jwplayer')[0]){e.detail.float('disable')}}}catch(e){}})},}) Labour ministers stand accused of being too timid to face down their own Left-wing MPs, who have demanded ever more benefits spending. The Office for Budget Responsibility (OBR) has admitted it underestimated how much the Government would borrow. Soaring inflation and rising interest rates had sent debt interest and welfare costs climbing beyond the OBR's forecasts. Article continues below ADVERTISEMENT Get the latest politics news - straight from our team in Westminster and more Subscribe Invalid emailWe use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. Read our Privacy PolicyThe true scale of the damage is laid bare in the latest official figures, which s...