Government borrowing falls to lowest November level in 3 years - what it means for your money
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Government borrowing dropped to £11.2bn last month, marking the lowest November figure in three years, buoyed by a rise in tax receipts and a sharp decrease in debt-interest payments, official data reveals. The Office for National Statistics (ONS) reported that public sector net borrowing was £3.4bn less than the same period last year, delivering a financial uplift for Chancellor Rachel Reeves.
Forecasts had pegged borrowing at £13.3bn for November. The latest figures indicate that the cost of servicing Government debt dipped to £3bn for the month – a £4.7bn reduction from the previous year and the smallest November total in half a decade.
This significant drop is attributed mainly to recent declines in the retail price index, an inflation measure that not only reflects shop goods prices but also influences the expense of certain inflation-linked bonds. Despite increases in departmental spending, welfare payments, and other public service expenditures, the reduced national debt servicing costs contributed to the overall lower borrowing figure.
Jessica Barnaby, ONS deputy director for public sector finances, commented: "Borrowing this month was over £3bn less than this time last year and the lowest November borrowing for three years. Central government tax receipts grew compared with last year, while increased spending on public services and on benefits were offset by lower debt interest payable.".
