UK government borrowing falls to £11.6bn in December

UK government borrowing fell to £11.6 billion in December, according to the Office for National Statistics, lower than the £13 billion economists predicted. This decrease, compared to £18.7 billion in December of the previous year, is attributed to stronger receipts and only modestly higher spending. Year-to-date borrowing stands at £140.4 billion, slightly down from the same period last year. Chancellor Rachel Reeves aims to reduce government borrowing, with debt interest accounting for a significant portion of current borrowing. Tax rises announced in the autumn budget are intended to offset rising spending and adhere to fiscal rules. The Office for Budget Responsibility projects a decrease in public sector net borrowing for the financial year, forecasting further reductions in the coming years.

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