Energy bills support drives UK public borrowing to record February

[ad_1]

“Substantial” government spending on energy bills support has sent public borrowing to an all-time February record, according to official figures.

The Office for National Statistics (ONS) said the £16.7bn budget deficit was the highest for the month since records began in 1993.

The total is up £9.7bn on February 2022 and greater than the £11.7bn that had been predicted by most economists in a Reuters poll.

ONS officials said the rise was “largely because of substantial spending on energy support schemes”, contributing £9.3bn to the total.

It comes after Chancellor Jeremy Hunt announced in the budget last week that the Energy Price Guarantee (EPG), which limits typical household bills to £2,500, would be extended for another three months, from April to June.

Mr Hunt said borrowing was “still high” because his government was “determined to support households and businesses with rising prices”.

“What will bring these costs right down is lower inflation, which is why it remains one of our top priorities to halve it this year, alongside growing our economy and reducing debt,” he added.

The cost of energy bills support has now reached £34bn since government schemes were introduced last October to help households and businesses cope with soaring gas and electricity bills in the wake of Russia’s invasion of Ukraine.