The UK government borrowed £11.7 billion in November, official figures show, exceeding City expectations of a £10 billion deficit. The Office for National Statistics (ONS) reported that public sector net borrowing was £1.9 billion lower than in the same month last year, but the financial year-to-date borrowing reached £132.3 billion, the second-highest on record for the period after 2020.
Tom Davies, an ONS senior statistician, noted that increased tax and national insurance receipts drove the monthly drop, but borrowing for the financial year so far is higher than last year. The figures come after Chancellor Rachel Reeves' autumn budget on 26 November, which aimed to increase fiscal headroom.
Matt Swannell of the EY Item Club warned that the overshoot could put Reeves at risk of missing the Office for Budget Responsibility's borrowing forecasts. He said the government needs to reduce the current budget deficit more substantially than last year.
Shadow Chancellor Mel Stride criticised the government, stating that borrowing this year is the highest on record outside the pandemic, and accused Labour of reckless spending. In response, Chief Secretary to the Treasury James Murray emphasised the government's commitment to cutting debt and borrowing, noting that £1 in every £10 spent goes on debt interest.
The November figures reflect increased spending on winter fuel payments and the state pension triple lock, as well as a £1.6 billion payment for the Hinkley Point C nuclear plant. Revenue from employer national insurance contributions rose by £3 billion year-on-year following April's rate changes.
Economist Elliott Jordan-Doak of Capital Economics said the higher-than-expected borrowing indicates that fiscal worries may soon dominate news again, questioning the sustainability of Reeves' reliance on future tax increases.
