UK borrowing more than expected in December

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The UK government borrowed more than expected in December, highlighting the challenge facing chancellor Rachel Reeves as she tries to restore confidence in her budget and growth plans.

Borrowing – the difference between public spending and money – was £17.8bn last month, £10.1bn more than in December 2023 and the highest December borrowing in four years, the data show. from the Office of National Statistics showed on Wednesday.

It was also above the £14.1bn expected by economists polled by Reuters, and compared to a forecast of £14.6bn by the Office for Budget Responsibility, the UK fiscal watchdog.

In the first nine months of the financial year, borrowing was £129.9bn, £8.9bn more than in the same period in 2023, the second highest financial year to December since the reports for each month since January 1993 and higher than the £125.9bn forecast by the OBR.

Reeves sought to reassure investors after the UK’s borrowing costs this month rose to their highest level since the global financial crisis, threatening its ability to meet the law. a financial planner who has set up daily expenses to be covered by tax receipts.

UK borrowing costs have eased since figures last week showed inflation unexpectedly fell in December, and global bond sales slowed.

But the government remains under pressure to turn around the economy, which grew by just 0.1 percent in November after mild contractions in September and October.

This is an ongoing story