Energy support drives UK borrowing to record highs

The cost of the energy support schemes helped drive government borrowing to a record high in February, its highest level for that month since records began in 1993, the ONS announced.

Public sector net borrowing hit £16.7 billion, £9.7 billion more than in February 2022, “largely because of substantial spending on energy support schemes”, the ONS said.

Central government debt interest payable was £6.9 billion in February, while in the financial year-to-February 2023, the public sector borrowed £132.2 billion, £15.5 billion more than in the same period last year and the third highest financial year-to-February borrowing since monthly records began in 1993.

Public sector net debt at the end of February 2023 was £2,507.3 billion, or around 99.2% of gross domestic product (GDP), “with the debt-to-GDP ratio at levels last seen in the early 1960s”.