UK Government Borrowing Rises By More Than Expected in December

Pressure mounts on Chancellor Rachel Reeves as December borrowing spikes to highest level in four years.

Alliance News 22 January, 2025 | 11:05AM James Gard
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Screen grab of Chancellor of the Exchequer Rachel Reeves speaking in the House of Commons, Westminster, answering questions from MPs for the first time since her return from a trip to China criticised by political opponents for coinciding with a week of volatility for the pound and soaring yields on UK bonds. Picture date: Tuesday January

UK public sector net borrowing, the difference between spending and tax revenue, was much higher than expected in December, figures released by the Office of National Statistics showed on Wednesday.

Borrowing totaled £17.81 billion in December, up from £11.8 billion in November. The November figure was revised up from £11.25 billion, and the December one far outpaced FXStreet-cited market consensus of £13.4 billion.

The £17.81 billion figure was £10.1 billion more than in December 2023 and the highest December borrowing for four years, the ONS noted.

For the year that ended December, which was nine months of data, UK government borrowing totaled £129.9 billion.

What’s the Context for UK Debt Markets?

Gilt yields have spiked in January as markets have cast doubt on the government’s fiscal plans.

While yields have fallen back from recent highs, recent interventions from the likes of hedge fund veteran Ray Dalio have added to the pressure on the UK chancellor to change course on fiscal plans.


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