The latest UK public finance figures show that government borrowing hit a near record in March.
Public sector net borrowing increased to £21.5bn in March, the second-highest March borrowing since monthly records began in 1993, and £16.3bn more than in March 2022.
Public sector receipts rose by 2.3% to £88.8bn, helped by rising tax receipts, but this was offset by a 19.9% increase in public spending, to £110.3bn in March.
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Spending was pushed up by the cost of capping energy costs for households and businesses, and the increased interest bill on inflation-linked government debt.
The figures also showed that the UK government borrowed £13.2bn less than expected in the last financial year.
Borrowing for the year to March was the fourth highest on record at £139.2bn but was below the £152.4bn forecast made last month by the Office for Budget Responsibility (OBR).
Chancellor Jeremy Hunt said the government was right to spend on energy support in the cost-of-living crisis, but warned “we cannot borrow forever”.
“These numbers reflect the inevitable consequences of borrowing eye-watering sums to help families and businesses through a pandemic and (Vladimir) Putin’s energy crisis.”
The EY ITEM Club said: “Given the undershoot was entirely due to lower-than-expected spending, the implications for future years are probably limited.”