Government borrowing continues to rise in March

Government borrowing continued to rise in March, partly due to the energy support scheme, according to figures released on Tuesday by the Office for National Statistics.

Public sector net borrowing came in at £21.5bn, slightly above expectations of £21.3bn and up £16.3bn on March 2022. It also marked the second-highest borrowing figure since monthly records began in 1993.

Meanwhile, borrowing for the financial year ending 31 March was estimated at £139.2bn - up £18.1bn on the previous year and the fourth highest since records began. The figure represents 5.5% of GDP.

Chancellor Jeremy Hunt said: "These numbers reflect the inevitable consequences of borrowing eye-watering sums to help families and businesses through a pandemic and Putin's energy crisis.

"We were right to do so because we have managed to keep unemployment at a near-record low and provided the average family more than £3,000 in cost of living support this year and last.

"We stepped up to support the British economy in the face of two global shocks, but we cannot borrow forever. We now have a clear plan to get debt falling which will reduce the financial pressure we pass onto our children and grandchildren."