UK Subsidy for Energy Bills Drives Deficit to Another Record

The UK government borrowed at a record rate in February as the cost of supporting consumer energy bills surged.

(Bloomberg) — The UK government borrowed at a record rate in February as the cost of supporting consumer energy bills surged.

The shortfall of £16.7 billion ($20.5 billion) was the highest for the month since records started in 1993 and higher than economists had expected. It’s also more than double the £7 billion posted a year ago.

The figures left the budget deficit in the 11 months of the fiscal year reported so far at £132.2 billion, the Office for National Statistics said Tuesday. That compares with £116.8 billion a year earlier.

The outlook for the public finances has improved in recent months, with the Office for Budget Responsibility no longer predicting a recession previously regarded as inevitable due to the cost-of-living crunch.

More stories like this are available on bloomberg.com