By Andy Bruce
MANCHESTER, England, March 20 (Reuters) - Britain's public finances showed renewed signs of strain on Friday as data showed government borrowing overshot expectations in February, before the war in Iran sent energy costs soaring which could add to pressure on public spending.
The Office for National Statistics said public sector net borrowing was 14.3 billion pounds ($19.17 billion) in February, official figures showed on Friday.
Economists polled by Reuters had a median forecast of a 8.5
billion-pound deficit for the month.
The ONS cited the timing of debt interest payments as a factor behind the 18% increase in borrowing compared with February 2025.
Despite the ONS revising up its estimate for January surplus to 31.9 billion pounds from 30.3 billion pounds previously, the data underscored the broader picture of vulnerable public finances under strain on various fronts.
The U.S.-Israeli war in Iran and the ensuing surge in energy prices has sent British government borrowing costs soaring - leaving the Treasury facing new demands to support consumers who will face higher bills and motor fuel costs later this year.
"Rising energy costs risk widening the UK government's deficit," said Dennis Tatarkov, senior economist at KPMG UK.
"Rising energy prices remain a clear risk to public finances through their effect on interest rates and inflation.
Short-dated British gilts - an important source of funding for the government - suffered one of their worst days since modern records began on Thursday after some Bank of England officials warned of possible interest rate rises, compounding a selloff driven by Iran's attacks on energy infrastructure.
($1 = 0.7460 pounds)
(Reporting by Andy BruceEditing by William Schomberg)
