The UK government borrowed more than expected in November, according to official figures that highlight pressure on the public finances ahead of Rachel Reeves' autumn budget. The Office for National Statistics (ONS) reported public sector net borrowing of £11.7bn, which was £1.9bn less than in November 2023 but above City forecasts of a £10bn deficit.
Tom Davies, an ONS senior statistician, said: 'Despite an increase in spending, this month's borrowing was the lowest November for four years. The main reason for the drop from last year was increased receipts from taxes and national insurance contributions.' However, he noted that borrowing for the financial year to date was higher than last year.
Borrowing in the financial year to November reached £132.3bn, £10bn more than the same period in 2024 and the second-highest figure for that period on record, after 2020 during the pandemic. Mel Stride, the shadow chancellor, said: 'At £132bn, borrowing this year is the highest on record, outside of the pandemic – yet at the budget Labour chose even more reckless spending, piling up ever higher debt.'
Matt Swannell of the EY Item Club warned that the overshoot could put Reeves in danger of missing the Office for Budget Responsibility's forecasts. He said: 'Over the next few months, the government will need to reduce the current budget deficit much more substantially than it did last year.' The figures come a day after the Bank of England cut interest rates for the sixth time since August, providing some relief to borrowers.
James Murray, chief secretary to the Treasury, said the government was targeting savings, noting that £1 in every £10 spent goes on debt interest. He added: 'That is why last month the chancellor set out a budget that delivers on our pledge to cut debt and borrowing.' Elliott Jordan-Doak of Capital Economics argued that the higher-than-expected borrowing showed it was 'only a matter of time before fiscal worries begin to dominate the news flow again.'
