Today’s economic data paints a grim picture for the UK, with public sector borrowing surging to £17.7 billion in May 2025 and retail sales plummeting by 2.7%—the sharpest drop since December 2023. These figures, released by the Office for National Statistics, lay bare the catastrophic impact of Chancellor Rachel Reeves’ economic policies. Far from stabilising the nation’s finances, her tax-heavy approach has throttled consumer spending, crushed business confidence, and sent borrowing soaring to the second-highest May figure on record. This is not just a blip—it’s a policy-driven collapse, and Reeves is squarely to blame.
The borrowing numbers are staggering. Despite a record £30.2 billion tax take in April and May, driven largely by punitive hikes in business taxes and national insurance, the government still borrowed £17.7 billion last month—£0.7 billion more than May last year. Economists had forecast a more modest £17.1 billion, but Reeves’ profligate spending, coupled with her failure to stimulate growth, has blown those projections out of the water. The UK’s net debt-to-GDP ratio now stands at 96.4%, up 0.5 percentage points from a year ago, creeping dangerously close to unsustainable levels. This is the legacy of a Chancellor who promised fiscal responsibility but has delivered a borrowing binge to fund Labour’s bloated spending commitments.
Retail sales, meanwhile, are in a nosedive. The 2.7% drop in May reflects a collapse in consumer confidence, with shoppers cutting back on everything from food to clothing. Supermarkets, clothing retailers, and furniture stores all reported dismal performance, as households reel from higher taxes, rising household bills, and an economy that shrank unexpectedly by 0.3% in recent data. This isn’t just a seasonal slump—it’s a direct consequence of Reeves’ tax raid, which has sucked disposable income out of households and left businesses grappling with increased costs. The Rightmove data underscores the gloom, with new seller asking prices dropping by £1,277 to £378,240, signalling a housing market teetering on the edge.
Reeves’ defenders might point to the slight dip in borrowing from April’s £20.2 billion or the boost from higher business taxes as signs of progress. But this is cold comfort when the broader picture is so dire. The extra tax revenue hasn’t closed the deficit—it’s merely propped up a government addicted to spending, with no clear plan to restore growth. Her decision to raise national insurance and business taxes has backfired spectacularly, choking off the very economic activity needed to balance the books. Retail sales don’t just fall 2.7% because of bad weather; they collapse when people can’t afford to spend, and businesses can’t afford to operate.
On X, the public’s frustration is palpable. Users have branded Reeves’ policies a “doom loop,” with one post slamming her for “crashing the economy” and another pointing out the absurdity of borrowing more while retail sales— a key revenue driver—tank. These aren’t just numbers; they’re the livelihoods of millions, squeezed by a Chancellor who seems oblivious to the damage she’s causing.
Reeves’ fiscal strategy is a masterclass in self-sabotage. Her tax hikes were supposed to plug the deficit, but instead, they’ve killed demand and driven borrowing higher. Her refusal to rule out further tax rises, as reported by the BBC on June 12, only deepens the sense of dread. Adjusting fiscal rules to allow an extra £113 billion in investment over five years sounds ambitious, but it’s reckless when the economy is already on its knees.
The Chancellor’s economic vision is a mirage—promising stability while delivering chaos. If she continues down this path, the UK faces a future of spiralling debt, stagnant growth, and a retail sector on life support. Reeves must reverse course, slash taxes to restore confidence, and prioritise growth over ideological spending sprees. The clock is ticking, and Britain can’t afford another month of her disastrous stewardship.
