Government borrowing decrease than anticipated in November | EUROtoday

Government borrowing fell within the 12 months to November as extra money was raised from taxes and fewer was spent on the nation’s debt curiosity funds, in line with official figures.

Borrowing – the distinction between spending and tax take – was £11.2bn final month, £3.4bn decrease than the identical month final 12 months and the bottom November determine since 2021.

Debt curiosity was down £4.7bn to £3bn, primarily because of decrease inflation.

The Office for National Statistics mentioned the federal government additionally spent extra cash on public companies and profit funds.

Borrowing was decrease than anticipated, with economists predicting the determine to be round £13bn.

Ruth Gregory, deputy chief UK economist at Capital Economics, mentioned “Christmas has come early” for Chancellor Rachel Reeves because of borrowing “undershooting” expectations.

But she added whereas the Chancellor could be inspired by the most recent figures, “weakening” within the UK financial system meant there was a “growing chance” of additional tax hikes or spending cuts.

Dennis Tatarkov, senior economist at KPMG UK, added the federal government had some “temporary respite” because of decrease curiosity repayments, however warned the pattern was “unlikely to last as actual and projected inflation has moved up in recent months”.