British public sector net borrowing unexpectedly surged in November to its highest on record, due to higher health, defence and EU spending, official data showed today.
The Office for National Statistics said public sector net borrowing, which smooths some of the monthly volatility in government revenue and spending, came in at a record £22.774 billion in November up from £16.719 a year ago and well above forecasts for it to hold steady at around £17 billion.
The government's preferred measure on which fiscal forecasts are based, PSNB excluding financial sector interventions, came in at £23.314 billion, up from £17.395 billion a year ago, and also a record high.
Total public borrowing for the fiscal year to date is lower than it was a year ago. However the figures are likely to raise concerns about the government's four-year plan to virtually eliminate the budget deficit.
The ONS said the deterioration in the public finances was due to higher government spending, a bigger contribution to the EU and significantly higher spending on health and defence than in previous years.
The PSNB excluding financial interventions for the year to date came to £104.410 billion compared to £105.067 billion for the year-ago period, and the Office for Budget Responsibility forecasts it will hit £148.5 billion this fiscal year.
The public sector posted a net cash requirement of £16.811 billion, also above forecasts for a slight fall to £14 billion and up from £14.782 billion a year ago.
For the fiscal year to date, the PSNCR totals £83.516 billion, below the £96.158 billion recorded between April and November 2009.
The ONS said public sector net debt including financial sector interventions as a percentage of GDP rose to 65.2 per cent, its highest since records began in March 1993.
Excluding financial sector interventions, public sector net debt was 58 per cent of GDP, also the highest since records began.
Public concerns about the scale of austerity measures needed to reduce government borrowing are already weighing on confidence. A survey by GfK NOP showed consumer morale held at its lowest level since July in December.
Reuters
