Soaring energy costs push UK public borrowing to November record

British public borrowing unexpectedly jumped last month to hit its highest for any November on record, reflecting the mounting cost of energy subsidies, debt interest and the reversal of an increase in payroll taxes, official figures showed on Wednesday.

by | 21 Dec, 2022

Borrowing rose to 22.0 billion pounds ($26.7 billion) from 8.1 billion pounds a year earlier – before Britain was hit by surging natural gas prices that have forced the government to subsidise heating and electricity costs for millions of households and businesses.

Economists polled by Reuters had forecast a much smaller increase to 13.0 billion pounds.

The news comes as the government faces a wave of strikes in the public sector – including nurses and ambulance drivers – as well as in the rail industry which relies heavily on subsidies.

Responding to the data, finance minister Jeremy Hunt repeated his position that he had no wish to change his spending plans. These allow no scope for public-sector pay to keep up with inflation, which hit a 41-year high in October.

Read more at Reuters

More from Financial Accountant

How the UK’s rollback of banking regulations could risk another financial crisis

How the UK’s rollback of banking regulations could risk another financial crisis

Money laundering plays a key role in every part of the illegal drugs industry. Here’s how it works

Money laundering plays a key role in every part of the illegal drugs industry. Here’s how it works

‘I’ve never paid myself’: why the reality for female entrepreneurs doesn’t always match the rhetoric

‘I’ve never paid myself’: why the reality for female entrepreneurs doesn’t always match the rhetoric

Sustainability ideals are often crushed by corporate demands. Here’s how businesses can let them flourish

Sustainability ideals are often crushed by corporate demands. Here’s how businesses can let them flourish

‘I was left with nothing.’ Why apprentices are being pushed into the informal economy

‘I was left with nothing.’ Why apprentices are being pushed into the informal economy

In the struggle to get Britain working, the long shadow of austerity could be part of the problem

In the struggle to get Britain working, the long shadow of austerity could be part of the problem

Share This