UK government borrowing hits record high

The amount of new public sector borrowing hit a fresh record high in November, according to the Office for National Statistics (ONS).

Net borrowing totalled £23.3bn last month, up from £17.4bn a year ago, and more than analysts had expected.

The borrowing figure was pushed higher by increased spending on health, defence and the EU.

The latest figures are likely to raise concerns about the government’s efforts to reduce the UK’s budget deficit.

While the government spent 10.8% more in November than the same month last year, its VAT receipts fell 0.1%.
Rogue figure?

A Treasury spokesman said: “November’s borrowing figures show why the government has had to take decisive action to take Britain out of the financial danger zone.

“These outturns are also in line with the Office of Budget Responsibility’s latest forecast for borrowing to fall by almost £10bn this year compared to last, and for tax receipts to increase by over 7% year-on-year.”

The ONS said public sector net debt now stood at 58% of UK GDP.

BBC News

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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell