UK government borrows more than expected in November

The UK government borrowed more than expected last month, according to figures released by the Office for National Statistics on Thursday.

Public sector net borrowing excluding public sector banks came in at £14.3bn. This was below November 2022’s £15.2bn but above consensus forecasts of £13bn. It also marked the fourth highest November borrowing since monthly records began in 1993.

Debt interest payments for November surpassed all monthly November figures on record since 1997, coming in at £7.7bn.

For the eight months to November, public sector net borrowing excluding banks was £116.4bn - up by £24.4bn on the same period a year earlier and the second highest financial year-to-November borrowing on record.

Ashley Webb, UK economist at Capital Economics, said he doubts the higher-than-expected borrowing figures will prevent the Chancellor from embarking on a pre-election fiscal splash in the Spring Budget.

Webb said the recent drop in market interest rate expectations supports CE's view that interest rates will be lower in 2025 than the Office for Budget Responsibility predicted in November.

"As a result, we expect this to give the Chancellor more wiggle room to unveil a further pre-election splash at the Sprint Budget. But this would almost certainly be followed by hefty tax rises in 2025 after the election."