UK debt passes £1trn mark for first time

The UK's public debt pile has climbed above £1trn for the first time ever, after the government borrowed almost £14bn last month.

The latest figures from the Office for National Statistics (ONS) showed net borrowing of £13.7bn in December, pushing the country's overall net debt above the £1trn mark.

Total net debt is now £1.004bn, equal to 64.2% of GDP. This figure was the highest since records began in 1993.

The widely expected figure also excludes the government's intervention in the financial sector, by discounting the debts of semi-nationalised banks Royal Bank of Scotland and Lloyds Banking Group which are majority owned by the government.

A current budget deficit of £10.8bn was recorded in December 2011.

After the figures were released, gilt yields were seen lower, with the 10-year gilt yield dropping marginally to 2.04%.

UK shares were also weaker in what has been a negative trading session since the market opened, with the FTSE 100 down 42 points or 0.7% at 5,740.

Later this week the first estimate for UK growth in the final quarter of 2011 will be released, with concerns among economists the economy could be contracting again.