Government borrows 11.2 billion pounds in November
Economists had expected reading of around 13 billion pounds
Deficit pushed down by oneoff drop in interest payments
Economic outlook remains tough for Reeves
Dec 20 Reuters Britain ran a smallerthanexpected budget deficit last month as a past lull in inflation pushed down interest paid on government bonds, giving a small boost to finance minister Rachel Reeves who has been under pressure following her budget announcement.
Public sector net borrowing in November was 11.249 billion pounds 14.06 billion, the Office for National Statistics said on Friday. Economists polled by Reuters had a median forecast of 13 billion pounds for headline public sector net borrowing.
The data showed the challenge Reeves faces to meet her new fiscal rules with the economy losing momentum the Bank of England on Thursday forecast zero growth in the last three months of 2024 and inflation rising again.
What will worry government is that recent economic indicators such as weak GDP growth and rising inflation are flashing amber, said Alison Ring, director of public sector and taxation at the ICAEW professional body for accountants.
Money remains extremely tight and that is unlikely to change any time soon.
Government borrowing has been higher than expected by economists polled by Reuters in eight of 11 months so far in 2024, while the ONS revised up its estimate for the deficit in the rest of 202425 by 5 billion pounds.
The…