Government borrowing lower than expected in December

Latest official figures reveal that government borrowing in December was lower than expected, at £7.8bn, according to the Office for National Statistics.

This amount was well below predictions, as many economists anticipated borrowing to be double at £14bn.

A significant decrease in government interest payments, down to £4bn from £14.1bn in December 2022, contributed to the lower borrowing figure.

The drop in inflation rates played a role in reducing interest payments.

While December 2023 shows the lowest borrowing since 2019, the fiscal year’s total borrowing reached £119.1bn, £11.1bn higher than the same period the previous year, marking the fourth-highest total on record.