Government borrowing hits £22billion a MONTH amid energy payouts

Government borrowing hits £22billion a MONTH, the highest November rate since records began amid soaring interest rates and energy payouts for families

  • Figure was higher than £21 billion figure predicted by economists for November 
  • ONS showed day-to-day government expenditure up by £13.5bn to £82bn
  • Included £3.3bn rise in social assistance costs driven by cost-of-living payments

Government borrowing struck £22 billion last month, jumping by £13.9 billion against the same month last year amid higher interest costs and cost-of-living payments to households.

The Office for National Statistics (ONS) said the reading represented the highest monthly figure for November borrowing since records began in 1993.

Economists had predicted a figure of £21 billion for the month, according to a consensus from Pantheon Macroeconomics.

Figures from the ONS showed that day-to-day central government expenditure increased by £13.5 billion to £82 billion for November.

It said this included a 50 per cent hike in interest payments to £7.3 billion, driven by debt interest payments linked to Retail Prices Index (RPI) inflation.

Meanwhile, the Government also witnessed a £3.3 billion increase in social assistance costs to £13.2 billion, driven by an increase in cost-of-living payments.

The Office for National Statistics (ONS) said the reading represented the highest monthly figure for November borrowing since records began in 1993.

Chancellor Jeremy Hunt said: ‘We have a clear plan to help halve inflation next year, but that requires some tough decisions to put our public finances back on a sustainable footing.’

Chancellor Jeremy Hunt said: ‘Faced with the twin global emergencies of a pandemic and Putin’s war in Ukraine, we have taken significant action to support millions of businesses and families here in the UK.

‘We have a clear plan to help halve inflation next year, but that requires some tough decisions to put our public finances back on a sustainable footing.’

Liberal Democrat Treasury spokeswoman Sarah Olney said: ‘This Conservative government has put our economy between a rock and a hard place by failing to get inflation under control and pushing the UK’s borrowing costs even higher with their catastrophic mini-budget.

‘It’s an outrage that hard-working families will be picking up the tab for their incompetence for years to come.

‘Ministers can’t use these figures as an excuse for hitting households with tax rises and cutting public services, when they caused this crisis in the first place.

‘The Government should put a proper windfall tax in place to boost the public finances and finally set out a proper plan to grow the economy.’

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