Finance
UK consumer borrowing rises by most since November 2023
Published by Global Banking and Finance Review
Posted on January 5, 2026
LONDON, Jan 5 (Reuters) - British consumer borrowing rose by the most in two years in November, Bank of England data showed on Monday, suggesting household demand remained solid ahead of finance minister Rachel Reeves' budget.
Consumer borrowing grew by a net 2.08 billion pounds ($2.79 billion) during the month, the most since November 2023 and more than any forecast in a Reuters poll of economists.
The increase was above October's 1.713 billion-pound rise, taking the annual rate of consumer credit growth to 8.1%, the fastest since the 12 months to May 2024.
"Today's release adds to the evidence that speculation about tax rises ahead of November's Budget didn't influence households' spending decisions too much," Alex Kerr, UK economist at Capital Economics, said.
"This also suggests there isn't much scope for a pick-up in consumer spending in 2026."
Reeves announced 26 billion pounds in tax rises in her annual budget on November 26 but delayed the introduction of most of the increases.
The BoE said the number of mortgages approved by British lenders for house purchase fell to 64,530 in November from 65,010 in October. Economists polled by Reuters had forecast that there would be 64,400 mortgage approvals in November.
($1 = 0.7445 pounds)
(Reporting by Suban AbdullaEditing by William Schomberg)
Frequently Asked Questions about UK consumer borrowing rises by most since November 2023
1What is consumer borrowing?
Consumer borrowing refers to the amount of money that households take out as loans, which can include personal loans, credit cards, and mortgages, to finance their spending.
2What is the Bank of England?
The Bank of England is the central bank of the United Kingdom, responsible for issuing currency, managing monetary policy, and ensuring financial stability.
3What are mortgage approvals?
Mortgage approvals are the process by which lenders assess and agree to provide a loan for the purchase of property, based on the borrower's financial situation.
4What is consumer credit growth?
Consumer credit growth refers to the increase in the total amount of credit extended to consumers, indicating their borrowing capacity and spending behavior.
5What is a budget?
A budget is a financial plan that outlines expected income and expenses over a specific period, helping individuals or organizations manage their finances effectively.
