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| UK government borrowing hits record high | UK government borrowing hits record high |
| (40 minutes later) | |
| The amount of new public sector borrowing hit a fresh record high in November, according to the Office for National Statistics (ONS). | The amount of new public sector borrowing hit a fresh record high in November, according to the Office for National Statistics (ONS). |
| Net borrowing totalled £23.3bn last month, up from £17.4bn a year ago, and more than analysts had expected. | Net borrowing totalled £23.3bn last month, up from £17.4bn a year ago, and more than analysts had expected. |
| The rise was caused by higher health and defence spending, and more money going to the European Union. | The rise was caused by higher health and defence spending, and more money going to the European Union. |
| The latest figures are likely to raise concerns about the government's efforts to reduce the UK's budget deficit. | The latest figures are likely to raise concerns about the government's efforts to reduce the UK's budget deficit. |
| While the goverment spent 10.8% more in November than the same month last year, its VAT receipts fell 0.1%. | |
| Rogue figure? | |
| A Treasury spokesman said: "November's borrowing figures show why the government has had to take decisive action to take Britain out of the financial danger zone. | A Treasury spokesman said: "November's borrowing figures show why the government has had to take decisive action to take Britain out of the financial danger zone. |
| "These outturns are also in line with the Office of Budget Responsibility's latest forecast for borrowing to fall by almost £10bn this year compared to last, and for tax receipts to increase by over 7% year-on-year." | "These outturns are also in line with the Office of Budget Responsibility's latest forecast for borrowing to fall by almost £10bn this year compared to last, and for tax receipts to increase by over 7% year-on-year." |
| The ONS said public sector net debt now stood at 58% of UK GDP. | |
| Total public sector net borrowing for the financial year to date has reached £104.4bn, although this is down slightly from the £105.1bn total for the same period last year. | |
| However, many analysts predict that the government could exceed its annual borrowing target of £148.5bn for the current financial year to 31 March. | |
| Philip Shaw, economist at asset management group Investec, said the latest official figures were "extremely disappointing". | |
| He added: "November's numbers seem to be a result of very strong spending and weak receipts growth, and it is very difficult to judge whether this is just a rogue figure, or whether it represents something more fundamental. | |
| "Our guess is that it's probably the former, but the seeds of doubt have been sown to a certain extent." | |
| The government is now continuing with a range of austerity measures to reduce the UK's public deficit. | |
| These include a £81bn package of public sector spending cuts and a VAT increase to 20% from 17.5% on 4 January. | |
| Jonathan Loynes, chief economist at Capital Economics, said: "Overall, there is nothing here to weaken the government's determination to see through its austerity programme. | |
| "But we continue to doubt that the economy will weather the coming fiscal storm as well as it hopes." |