Britain's public sector net borrowing hit a record high in November, taking the country's net debt to a record 60.2 per cent of total economic output, official data showed today.
The Office for National Statistics (ONS) said public sector net borrowing came in at £20.315 billion pounds in November -- the highest for any month since records began in January 1993.
But that was below analysts' forecasts for a reading of £23 billion and elicited little reaction from holiday-thinned markets.
The number of Britons claiming unemployment benefit unexpectedly fell in November, data showed earlier this week.
But other figures on Friday painted a less positive picture.
Bank of England data showed the flow of lending to British businesses fell for the ninth straight month in October as firms continued to pay down debt.
British gross mortgage lending fell 14 per cent year-on-year to £12 billion in November, the Council of Mortgage Lenders said.
And consumer confidence fell in December for a second consecutive month, the first time since July 2008 that confidence fell two months in a row, according to a survey by GfK NOP.
The government revised up its prediction for government borrowing this fiscal year to a record £178 billion, or 12.6 per cent of GDP in its pre-budget report last week, from an initial estimate of £175 billion.
It is counting on a strong rebound in growth in the coming years to help return the public finances to a more stable footing, but analysts are worried about a lack of detail about what spending cuts and tax rises will be made alongside this.
The public sector net cash requirement (PSNCR) rose to £14.671 billion from £6.617 billion, the highest for a month of November since records began in April 1984.
The public sector current budget deficit rose to £16.190 billion -- the highest for a month of November since records began in April 1998 and the highest for any month since May 2009.
Reuters