Borrowing by Rishi Sunak’s government surged to a record £22bn last month following higher interest costs and cost of living payments to households.
The Office for National Statistics (ONS) said state borrowing leapt £13.9bn compared with the same month last year – the highest figure for November since records began in 1993.
Chancellor Jeremy Hunt blamed the Covid pandemic and Putin’s war in Ukraine for the country’s mounting economic problems – promising to half inflation in 2023.
“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,” said Mr Hunt.
He added: “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.”
The latest figure was ahead of forecasts by economists, who had predicted a figure of £21bn for the month according to a consensus from Pantheon Macroeconomics.
Total public sector spending struck £98.9bn for the month while day-to-day central government expenditure increased by £13.5bn to £82bn for November, the ONS said.
It said this included a 50% hike in interest payments to £7.3bn, driven by debt interest payments linked to Retail Prices Index (RPI) inflation.
Meanwhile, the government also witnessed a £3.3bn increase in social assistance costs to £13.2bn, driven by an increase in cost of living payments. Public sector receipts – largely tax revenues for the government – hit £76.9bn for the month.
The ONS also revealed that public sector net debt grew by £125.9bn to £2,477.5bn compared to November last year.
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