Government borrowing in December 2024 reached £17.8 billion, the highest level for the month in four years, according to the Office for National Statistics (ONS).
This figure is £10.1bn more than in December 2023 and significantly exceeds the £14.6bn forecast by the Office for Budget Responsibility (OBR).
The increase in borrowing is attributed to higher spending on public services, benefits, and debt interest, while a reduction in National Insurance, introduced by the previous government, offset the rise in tax revenue.
Interest on government debt for December stood at £8.3bn, £3.8bn more than the same period last year, marking the third-highest December debt interest repayment since records began in 1997.
Alex Kerr, UK economist at Capital Economics, told the BBC that December’s borrowing was further impacted by a one-off £1.7bn payment to repurchase military accommodation Read More….