Net public sector borrowing (excluding public sector banks) in the UK reached £22bn in November 2022, the highest amount for November since records began in 1993.
Borrowing, the difference between spending and tax income, was up by £13.9bn compared to November 2021 and was nearly £9bn higher than the total recorded just a month earlier in October 2022, according to figures from the Office for National Statistics (ONS).
The increase in borrowing came despite the government collecting £2.2bn more in tax last month compared with a year ago.
Interest payable on central government debt increased by 50.1% to £7.3bn.
In addition to higher interest payments, the cost of energy support for households and business was a significant factor behind the increase in government borrowing.
The Energy Bills Support Scheme gives households £400 towards the cost of their energy bills over a six-month period, while the Energy Price Guarantee caps energy costs at £2,500 for a typical household.
These costs were the main reason for the spike in government borrowing, ONS chief economist Grant Fitzner told the BBC’s Today programme.
“Firstly, of course, as we know the cost of energy support for households and business, that’s around £6.5bn extra spending a month,” Fitzner said.
“[It’s also due to] higher debt interest payments, reflecting again, high inflation and interest rate payments and also higher pensions and benefits than a year ago.”
