Government borrowing jumps to £17.8bn in December

(Sharecast News) - The UK government borrowed more than expected in December, according to figures released on Wednesday by the Office for National Statistics. The government borrowed £17.8bn, up £10.1bn on December 2023.

It was above the £14.6bn expected by the Office for Budget Responsibility and consensus expectations of £14.2bn.

It was also the highest figure in four years and the third highest December figure on record.

The ONS said the interest payable on central government debt was £8.3bn in December, largely because of movements in the retail prices index. This was up £3.8bn on December 2023 and the third highest December figure since monthly records began in January 1997.

Alex Kerr, UK economist at Capital Economics, said: "Against a backdrop of slowing GDP growth and high interest rates, December's overshoot in borrowing is further disappointing news for the Chancellor.

"That said, most of the overshoot was because of a one-off payment and components that are heavily revised so the figures may not be as bad as they first appear. But the figures leave the current budget deficit on track to overshoot the OBR's forecast of £55.5bn in the 2024/25 fiscal year by around £1.5bn."