Energy bill help pushes UK borrowing to new record

Government borrowing hit a new high in December, driven by the cost of supporting households with their energy bills and high debt interest costs.

Borrowing, the difference between spending and tax income, was £27.4bn, a rise of £16.7bn on December 2021.

Interest on government debt hit £17.3bn, more than double what it was a year earlier.

The Office for National Statistics (ONS) said inflation was main factor behind the rise in borrowing.

While gas prices have begun to come down, the typical energy bill is almost twice what it was before Russia invaded Ukraine in 2022.

To help ease the burden, the government cut all energy bills in England, Scotland and Wales £400 this winter.

It also launched the Energy Price Guarantee, which limits average bills to £2,500 per year.

It comes as inflation, the rate at which prices rise, is at its highest level for 40 years, putting millions of households under pressure.

Chancellor Jeremy Hunt said: "Right now we are helping millions of families with the cost of living, but we must also ensure that our level of debt is fair for future generations.

"We have already taken some tough decisions to get debt falling, and it is vital that we stick to this plan so we can halve inflation this year and get growth going again - creating better paid jobs across the country."