UK posts budget deficit of 16.7 billion pounds in February
Borrowing boosted by energy bill support programmes
Deficit looks on track to meet OBR forecast for 202223
Figures underline tough choices facing finance minister Hunt

LONDON, March 21 Reuters Britain39;s government borrowed more than expected in February, official data showed on Tuesday, but finance minister Jeremy Hunt may still hope that falling energy costs and inflation will offer leeway later this year for a preelection tax cut.

The Office for National Statistics said public sector net borrowing, excluding stateowned banks, was 16.7 billion pounds 20.4 billion last month, the largest February deficit since monthly records began in 1993.

The reading was above all predictions in a Reuters poll of economists, which had a median forecast for 11.4 billion pounds in borrowing.

The figures are not adjusted for the time of year so comparisons are usually only made against the same month in previous years and nor do they account for the impact of inflation over time.

The ONS said February39;s borrowing data reflected substantial spending on energy bill support programmes.

The higherthanexpected borrowing underlines the dilemma facing Hunt, who must fund expensive support for households and businesses in the near term while working out a way to cut taxes before the next election, likely to be in 2024.

Hunt said last week the energy subsidies would be extended until June, but would cease thereafter as…