UK borrowing hits February record on energy support

UK state borrowing hit a February record on energy subsidies, official data showed Tuesday, after Russia’s invasion of Ukraine sent electricity and gas bills soaring.

Public sector net borrowing hit £16.7 billion ($17.9 billion) last month, up £9.7 billion from a year earlier, the Office for National Statistics said in a statement.

That was the highest monthly February amount since comparable records began in 1993, and was greater than expectations of about £12 billion.

Borrowing soared last month as Prime Minister Rishi Sunak’s government spent another £9.3 billion on energy support schemes for businesses and households to ease a cost-of-living crisis.

“Cushioning households from the full impact of those sky-high energy costs has come with a huge price tag for the UK government,” said Danni Hewson, head of financial analysis at AJ Bell.

The data comes after the government last week said it would extend the subsidy on household energy bills until the end of June.