British consumer borrowing recorded its strongest increase in two years in November, according to data released by the Bank of England on Monday, indicating that household demand remained resilient ahead of finance minister Rachel Reeves’ budget.
Net consumer credit rose by £2.08bn ($2.79bn) during the month, the largest increase since November 2023 and above all forecasts in a Reuters poll of economists. This compared with a £1.713bn rise in October and pushed the annual growth rate of consumer credit to 8.1%, the fastest pace since the year to May 2024.
“Today’s figures add to the evidence that expectations of tax rises ahead of November’s Budget did not significantly curb household spending,” said Alex Kerr, UK economist at Capital Economics. “However, they also point to limited scope for a meaningful acceleration in consumer spending in 2026.”
Reeves announced £26bn of tax increases in her annual budget on 26 November, though the majority of the measures were deferred.
Separately, the Bank of England said mortgage approvals for house purchases slipped to 64,530 in November from 65,010 in October. Economists surveyed by Reuters had expected approvals to come in at 64,400 for the month.
