London Daily

Focus on the big picture.
Monday, Aug 25, 2025

Government borrowing soars to record level for November

Government borrowing soars to record level for November

Chancellor Jeremy Hunt blamed the pandemic and Russia's invasion of Ukraine as government borrowing surged to £22bn last month.
Government borrowing reached the highest amount for November since records began in 1993, official data shows.

Last month, net public sector borrowing - excluding public sector banks - totalled £22bn, according to figures from the Office for National Statistics (ONS).

The figure was up by £13.9bn compared to November 2021 and nearly £9bn higher than the total for October.

The rise comes as the energy bills support scheme continued to be rolled out and interest payments rose to £7.3bn.

The Energy Bills Support Scheme - which is paying out £400 to households over a six-month period - cost the government £1.9bn in November.

It also confirmed that the Energy Price Guarantee, which has capped energy costs to £2,500 for a typical household, was the main driver of a £4.7bn year-on-year increase in subsidies.

Interest rate payments rose and were £2.4bn higher than a year ago.

As inflation drove up prices, it also drove up the cost of government borrowing.

As the retail price index rose so too did the government bonds linked to inflation, index-linked gilts. Payments on those index-linked gilts accounted for £4.2bn of the total interest rate payments made by the government last month.

Debt as a whole across the public sector - excluding public sector banks - was £2,477.5bn at the end of last month.

That is up £125.9bn on the same period last year but is now a lower portion of gross domestic product (GDP) - a measure of economic output. The amount of debt accounts for around 98.7% of GDP.

Borrowing will only increase, according to economic research group Pantheon Macroeconomics.

"We continue to expect public borrowing to overshoot the OBR's (Office of Budget Responsibility's) forecast in future years," the group said.

Chancellor Jeremy Hunt blamed the figures on the pandemic and Russia's invasion of Ukraine.

"Faced with the twin global emergencies of a pandemic and Putin's war in Ukraine, we have taken significant action to support millions of businesses and families here in the UK," he said.

"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."

Despite the increasing debt, the Institute of Chartered Accountants in England and Wales said there is cause for relief in the figures.

"Chancellor Jeremy Hunt will be relieved that the deficit for the year-to-date only exceeded £100bn by £5bn, on track to stay within the Office for Budget Responsibility's latest forecast of £177bn for the full year," it said.
Newsletter

Related Articles

0:00
0:00
Close
Vietnam Evacuates Hundreds of Thousands as Typhoon Kajiki Strikes; China’s Sanya Shuts Down
UK Government Delays Decision on China’s Proposed London Embassy Amid Concerns Over Redacted Plans
A 150-Year Tradition to Be Abolished? Uproar Over the Popular Central Park Attraction
A new faith called Robotheism claims artificial intelligence isn’t just smart but actually God itself
Deputy Prime Minister Angela Rayner Purchases Third Property Amid Housing Tax Reforms Debate
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Italian Facebook Group Sharing Intimate Images Without Consent Shut Down Amid Police Investigation
Dutch Foreign Minister Resigns Amid Deadlock Over Israel Sanctions
Trump and Allies Send Messages of Support to Ukraine on Independence Day Amid Ongoing Conflict
China Reels as Telegram Chat Group Shares Hidden-Camera Footage of Women and Children
Sam Nicoresti becomes first transgender comedian to win Edinburgh Comedy Award
Builders uncover historic human remains in Lancashire house renovation
Australia Wants to Tax Your Empty Bedrooms
MotoGP Cameraman Narrowly Avoids Pedro Acosta Crash at Hungarian Grand Prix
FBI Investigates John Bolton Over Classified Documents in High-Profile Raids
Report reveals OpenAI pitched national ChatGPT Plus subscription to UK ministers
Labour set to freeze income tax thresholds in long-term 'stealth' tax raid
Coca‑Cola explores sale of Costa coffee chain
Trial hears dog walker was chased and fatally stabbed by trio
Restaurateur resigns from government hospitality council over tax criticism
Spanish City funfair shut after serious ride injury
Suspected arson at Ilford restaurant leaves three in critical condition
Tottenham beat Manchester City to go top of Premier League
Bank holiday heatwave to hit 30°C before remnants of Hurricane Erin arrive
UK to deploy immigration advisers to West Africa to block fake visas
Nurse who raped woman continued working for a year despite police alert
Drought forces closures of England’s canal routes, canceling boat holidays
Sweet tooth scents: food-inspired perfumes surge as weight-loss drugs suppress appetites
Experts warn Britain dangerously reliant on imported food
Family of Notting Hill Carnival murder victim call event unmanageable
Bunkers, Billions and Apocalypse: The Secret Compounds of Zuckerberg and the Tech Giants
Ukraine Declares De Facto War on Hungary and Slovakia with Terror Drone Strikes on Their Gas Lifeline
Animated K-pop Musical ‘KPop Demon Hunters’ Becomes Netflix’s Most-Watched Original Animated Film
New York Appeals Court Voids Nearly $500 Million Civil Fraud Penalty Against Trump While Upholding Fraud Liability
Elon Musk tweeted, “Europe is dying”
Far-Right Activist Convicted of Incitement Changes Gender and Demands: "Send Me to a Women’s Prison" | The Storm in Germany
Hungary Criticizes Ukraine: "Violating Our Sovereignty"
Will this be the first country to return to negative interest rates?
Child-free hotels spark controversy
North Korea is where this 95-year-old wants to die. South Korea won’t let him go. Is this our ally or a human rights enemy?
Hong Kong Launches Regulatory Regime and Trials for HKD-Backed Stablecoins
China rehearses September 3 Victory Day parade as imagery points to ‘loyal wingman’ FH-97 family presence
Trump Called Viktor Orbán: "Why Are You Using the Veto"
Horror in the Skies: Plane Engine Exploded, Passengers Sent Farewell Messages
MSNBC Rebrands as MS NOW Amid Comcast’s Cable Spin-Off
AI in Policing: Draft One Helps Speed Up Reports but Raises Legal and Ethical Concerns
Shame in Norway: Crown Princess’s Son Accused of Four Rapes
Apple Begins Simultaneous iPhone 17 Production in India and China
A Robot to Give Birth: The Chinese Announcement That Shakes the World
×