Government borrowing falls to four-year low in November
By Michele Maatouk
Date: Friday 19 Dec 2025
(Sharecast News) - Government borrowing hit a four-year low in November, according to figures released on Friday by the Office for National Statistics.
Borrowing - which is the difference between total public sector spending and income - came in at £11.7bn, down £1.9bn on November 2024 and the lowest borrowing figure for that month since 2021.
Nevertheless, it was above economists' expectations for a decline to £10bn.
Central government tax receipts increased by £2.5bn to £63.5bn. This included increases of £1.2bn in income tax, £0.8bn in VAT and £0.4bn in corporation tax receipts.
Borrowing in the financial year to November was £132.3bn, up £10bn on the same period a year earlier and the second-highest April to November borrowing on record after that of 2020.
ONS senior statistician Tom Davies said: "Despite an increase in spending, this month's borrowing was the lowest November for four years. The main reason for the drop from last year was increased receipts from taxes and National Insurance contributions.
"However, across the financial year to date as a whole, borrowing is higher than last year."
Danni Hewson, head of financial analysis at AJ Bell, said: "The impact of government policy choices and U-turns was clearly evident in the latest set of public sector finances.
"Changes to employer National Insurance helped net the Treasury an additional £3 billion in November but an additional £1.8 billion has been shuffled to the minus column for the financial year after the government ditched its unpopular winter fuel policy.
"There was other good news to help keep borrowing below last November's figure as higher wages also meant more income tax flooding in and falling inflation pushed down borrowing costs to the lowest level for the month for six years.
"Finding ways to balance the books isn't easy and rarely popular as an ageing population and rising unemployment adds to the demand on the public purse. Whilst November's borrowing is the lowest since 2021 it's still above where economists had expected it to come in and significantly higher than the OBR had forecast in March."
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