UK public sector borrowing fell to £14.3 billion in November, as lower spending on government energy support schemes offset a higher bill for benefits.
According to figures from the Office for National Statistics (ONS), the figure was £0.9 billion less than in the same month in 2022, but higher than the £12.9 billion forecast by economists.
“Payments relating to the energy price schemes that began in October 2022 have now stopped; however, these reductions in spending were offset by other inflation-related costs, such as increased benefit payments,” the ONS said.
Since the start of the financial year in April, the government has borrowed £116.4 billion, which is £24.4 billion more than in the same period last year and the second-highest financial year-to-November borrowing on record.
Public sector borrowing had undershot the forecast from the Office for Budget Responsibility (OBR), the UK fiscal watchdog, for most of this year, thanks to stronger tax receipts than in its March forecast.
The EY ITEM Club said although the public finances benefited from continued growth in tax revenues, inflation pushed up spending on public services and debt interest.
But it said the brighter fiscal outlook thanks to a fall in market interest rates mean it is "likely that the Budget next spring, the last before the next general election, will deliver tax cuts".