Government borrowing at three-year low for November

Government borrowing fell in November as more money was raised from taxes and less was spent on the country’s debt interest payments, according to official figures.
Borrowing – the difference between spending and tax take – was £11.2bn last month, the lowest November figure since 2021, the Office for National Statistics (ONS) said.
Separate figures from the ONS showed retail sales rose slightly last month, helped by stronger trading at supermarkets.
The latest figures come as economic growth in the UK remains weak and inflation – the rate at which prices increase over time – is rising at its fastest pace since March.

November’s borrowing figure was down by £3.4bn from the same month last year and below expectations of around £13bn.
It means the total amount the government has borrowed since the start of the current financial year stands at £113.2bn.
This is below the same period last year, but £2bn above predictions by the government’s forecaster the Office for Budget Responsibility (OBR).
Debt interest was down £4.7bn from a year earlier to £3bn, mainly due to lower inflation.
Ruth Gregory, deputy chief UK economist at Capital Economics, said November borrowing “undershooting” expectations meant “Christmas has come early” for Chancellor Rachel Reeves.
But she added while the chancellor would be encouraged by the latest figures, weakening in the UK economy meant there was a growing chance of further tax hikes or spending cuts.
Dennis Tatarkov, senior economist at KPMG UK, added the government had some “temporary respite” due to lower interest repayments, but warned the trend was “unlikely to last as actual and projected inflation has moved up in recent months”.
Retail sales rose 0.2% in November after a 0.7% fall in October, but a rise in sales at supermarkets was partly offset by a fall in clothing sales, the ONS said.
However, its latest survey period did not cover the official Black Friday date of 29 November.