The UK government borrowed more than expected last fiscal year, official data showed Wednesday, underlining the pressures the Labour government faces as it also contends with US tariffs.

Public sector net borrowing — the difference between spending and tax receipts — stood at £151.9 billion ($202.4 billion) in the year to the end of March, the Office for National Statistics said in a statement.

That marks the third highest financial-year borrowing on record behind 2020/2021 during the Covid pandemic and in 2009/2010 during the fallout from the global financial crisis, the ONS said.

The figure far exceeded the £137.3 billion forecast by the Office for Budget Responsibility (OBR), Britain’s spending watchdog.

The Labour government, led by Prime Minister Keir Starmer, was elected last July on a promise to revive sluggish growth but has since struggled due to fresh economic headwinds and stubborn inflation.

Finance minister Rachel Reeves has already implemented business tax hikes and announced billions of pounds of public spending cuts, including to disability welfare payments, in the hope of shoring up public finances.

But since then, US President Donald Trump’s 10-percent tariffs on the UK, as well as on other countries, threaten to further strain the country’s economic outlook.

The International Monetary Fund on Tuesday downgraded its 2025 growth forecast for the UK to 1.1 percent, from a previous estimate of 1.6 percent, largely attributed to domestic factors — such as weak growth in the second half of last year — in addition to the impact of tariffs.

Weaker economic growth would mean lower tax receipts, piling more pressure on public finances.

“March’s public finances figures showed that public borrowing was overshooting the OBR’s forecast even before the influence from the tariff chaos is felt,” said Ruth Gregory, deputy chief UK economist at Capital Economics.

“This raises the chances that if the chancellor (of the exchequer, Reeves) wishes to stick to her fiscal rules, more tax hikes in the Autumn Budget will be required,” she added.