Government borrowing falls significantly below expectations in December at £7.8bn

OBR forecast of £14bn

Public sector net borrowing for the month of December came in well below forecasts at £7.8bn, according to the Office for National Statistics.

The figure halved from December 2022 and was significantly lower than the £14bn forecast by the Office for Budget Responsibility, marking the lowest December borrowing since 2019. UK inflation unexpectedly rises to 4% in December Central government debt interest payable was £4bn last month, down £14.1bn from a year prior, and the lowest figure since December 2020, the ONS noted. The agency explained the drastic drop was largely affected by Retail Prices Index movements on index-linked gilts. However, borrowing for the financial year to December 2023 was £119.1bn, up £11.1bn on t...