15.1 C
Auckland
Saturday, May 18, 2024

Popular Now

UK borrowing hits record high

UK economy news

Soaring energy costs are pushing government debt higher, according to official data.

The British government borrowed a record £22 billion ($27 billion) in November, the highest monthly figure since records started in 1993, the Office for National Statistics (ONS) has revealed.

According to its report on Wednesday, the figure is £13.9 billion more than the same month in 2021, as the country has been hit by soaring natural gas prices that have forced the government to subsidize heating and electricity costs for millions of households and businesses.

The ONS data showed that public sector net borrowing (excluding banks bailed out during the financial crisis) was £105.4 billion in the financial year to November 2022, the fourth highest year-to-date total since 1993 and £50.8 billion higher than in 2019.

The report comes as the British government is facing a wave of strikes by public sector workers, who are demanding a wage increase due to rising inflation. These include nurses and ambulance drivers, as well as workers in the railway industry, which is heavily dependent on subsidies.

In response, Finance Minister Jeremy Hunt has said he will not change his spending plans. According to Reuters, these allow no scope for public-sector pay to keep up with inflation, which hit a 41-year high in October.

“We have a clear plan to help halve inflation next year, but that requires some tough decisions to put our public finances back on a sustainable footing,” Hunt said.

Official data shows that inflation, which slowed from a peak of more than 11% in October to 10.7% last month, is still near its highest since the early 1980’s.

Last month, the British government’s Office for Budget Responsibility revised up its forecast for borrowing in 2022/23 to £177 billion, or 7.1% of GDP, from an earlier estimate of £99.1 billion.

Promoted Content

Source:RT News
  • Related:
  • UK

No login required to comment. Name, email and web site fields are optional. Please keep comments respectful, civil and constructive. Moderation times can vary from a few minutes to a few hours. Comments may also be scanned periodically by Artificial Intelligence to eliminate trolls and spam.

2 COMMENTS

  1. It is only a metter of time, globalist lenders (Banks and Corporations) demand mush higher interest for UK debts. More pain awaits unless they increase productivity, which is pretty much impossible when domestic manufacturing is at its lowest level. UK already taxed heavily. Doom and gloom awaits.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest

Trending

Sport

Daily Life

Opinion

Wellington
few clouds
13.8 ° C
14.5 °
13.3 °
74 %
10.3kmh
20 %
Sat
14 °
Sun
13 °
Mon
13 °
Tue
14 °
Wed
12 °
-- Free Ads --spot_img