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UK public sector borrowing ballooned in November, according to Office for National Statistics, due to the government’s energy support schemes and high inflation.
Public sector net borrowing excluding public sector banks jumped to £22.0 billion, which was £13.9 billion higher than in November of 2021.
Borrowing reached its highest level for November since monthly records began in 1993, ONS said.
£1.9 million was spent on the Energy Bill Support Scheme during the month, and the Energy Price Guarantee led a £4.8 billion increase in other subsidies from last November.
Public sector net debt excluding public sector banks and the Bank of England reached a total of £21.20 billion, surpassing the £13.37 billion in October, which was revised upwards from £12.73 billion.
Total public spending was £98.9 billion in November, with central government spending of £82.0 billion, which was £13.5 billion more than November 2021.
Total public sector receipts were £76.9 billion, with central government tax receipts making up £51.6 million of this figure.
‘Since mid-2021, the cost of servicing central government debt has increased considerably. These rising costs do not principally reflect recent increases in the level of government debt,’ ONS explained.
‘Instead, the recent high levels of debt interest payable are largely a result of higher inflation, with the interest payable on index-linked gilts rising in line with the retail prices index.’
The interest payable on central government debt was £7.3 billion, of which £4.3 billion reflects the impact of inflation.
By Elizabeth Winter, Alliance News senior markets reporter
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