GOVERNMENT BORROWING HIGHER THAN EXPECTED

Government borrowing was £14.3 billion in November, according to the Office for National Statistics (ONS). This was £900 million lower than a year earlier, but higher than forecasts (BBC News). 

The figure is the fourth-highest November total since records began in 1993. The ONS noted payments relating to the energy price schemes that began in October 2022 have now stopped, but benefits and debt interest payments have increased (City AM). 

UK HOUSE PRICES SEE SIGNIFICANT ANNUAL DECLINE 

The average price of a UK house fell by 0.7 per cent over the month to £287,782 in October, according to the Office for National Statistics (The Times).  

The figure recorded in October 2022 was £291,193. This represents the largest annual decline since the autumn of 2011 (Financial Times). 

House prices not falling further is being attributed to the lack of homes available for sale stopping supply from outpacing demand. Low unemployment has led to few forced sales, with most would-be movers waiting for the market to improve.  

NEWS IN BRIEF

Business confidence has experienced its largest one-month decline since August 2022, according to Lloyds Banking Group’s Business Barometer (Reuters).  

The UK and Switzerland will today sign a mutual recognition agreement aimed at strengthening ties between the City and Switzerland (The Guardian).  

Orsted A/S has decided to go ahead with building the world’s largest offshore wind farm off Norfolk (Bloomberg).  

Financial markets are forecasting that interest rates will start falling in March next year, following the consumer prices index falling to 3.9 per cent in November (The Telegraph).