Government borrowing lower than expected in November

Government borrowing fell in the year to 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 and lower than economists expected.

Debt interest was down £4.7bn to £3bn, mainly due to lower inflation.

The Office for National Statistics said the government also spent more cash on public services and benefit payments.

Economists had predicted borrowing of about £13bn last month and the figure was £3.4bn lower than in November 2023.

Ruth Gregory, deputy chief UK economist at Capital Economics, said “Christmas has come early” for Chancellor Rachel Reeves, with borrowing “undershooting” economists’ expectations.

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.