Gov't Borrowing Rises as Interest Payments and Benefits Bite

Though lower than last year's figures for November, the sums are still the fourth-highest November total since monthly records began in 1993

Alliance News 21 December, 2023 | 9:38AM
Facebook Twitter LinkedIn

HM Treasury

UK government borrowing was higher than expected last month amid greater benefits costs and increased interest payments, official figures on Thursday showed.

However, it was lower than the same month last year after the government spent significantly less on energy support for households.

The Office for National Statistics (ONS) said public sector net borrowing stood at £14.3 billion in November, the fourth-highest November total since monthly records began in 1993. Economists had forecast borrowing of £13.1 billion for the month.

The ONS also revealed that borrowing for October was £3.8 billion greater than it had previously estimated.

Borrowing for the financial year-to-date stood at £116.4 billion, £24.4 billion more than the same period last year but undershooting forecasts from the government's official forecaster, the Office for Budget Responsibility.

Laura Trott, the newly-appointed chief secretary to the Treasury, says: "it was right to spend billions protecting people during the pandemic and the energy shock triggered by Putin's invasion of Ukraine, but we cannot leave our children and grandchildren to pick up the tab.

"That's why the prime minister has made reducing debt a top priority.

"We are taking difficult decisions in the national interest to control our borrowing needs and improve productivity, so that we deliver the public services people need while keeping inflation down."

By Henry Saker-Clark, PA Deputy Business Editor

Subscribe to Our Newsletters

Sign up Now

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

About Author

Alliance News  provides Morningstar with continuously updating coverage of news affecting listed companies.

© Copyright 2024 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Modern Slavery Statement        Cookie Settings        Disclosures