Public sector net borrowing (PSNB) in November fell to £11.2 billion, down from a revised £18.2 billion the previous month, £4.8 billion less than the consensus forecast. £3.4 billion less than in November 2023 and the lowest November borrowing for three years. Current budget deficit was £6.8 billion in November 2024, £3.5 billion less than in November 2023 and the lowest November current budget deficit for three years.

The latest update takes the RPI to 8 and the RPI-P to 9. This means that economic activity is within the expectations of the UK economy.

Borrowing is expected to fall marginally to a still sizeable £16.0 billion in November.

The public sector net borrowing requirement (PSNB) is the difference between the sector's receipts and expenditure and so provides a simple measure of government fiscal policy. In response to the global economic crisis in 2008/09 the UK government introduced a number of measures designed to show the underlying state of public sector finances by omitting temporary distortions caused by financial interventions. It bases its fiscal policy on these measures. To this end, the underlying gauge of government borrowing watched most closely by financial markets is the PSNB-X which takes overall net borrowing (PSNB) but excludes public sector banks.

Changes in public sector finances can be used to determine the thrust of the government's fiscal policy. Generally speaking when the government has a rising deficit (or falling surplus) it is loosening its fiscal stance with a view to boosting economic activity. When its deficit is falling (or surplus rising), fiscal policy is being tightened in order to slow economic growth. However, sometimes changes in government financial positions can be due to factors outside of the government's control and do not signal an explicit shift in policy. This means that great care is needed in interpreting the data.