Debt interest hit as December borrowing at four-year high
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The Treasury borrowed more than expected last month to record the highest December sum for four years, official figures have shown, with higher debt interest payments adding to the bill. The Office for National Statistics (ONS) reported a net borrowing figure for December of £17.8bn when a sum just above £14bn had been expected by economists.
It left public sector net borrowing £10.1bn up on the same month last year and £8.9bn higher than at the same point in the last financial year. Borrowing is on the up amid a budget-led drive for public sector investment but the ONS data showed an £8.3bn debt interest bill - the third-highest December total on record.
Money latest: UK mortgage rules could be about to change. The report said that higher bill was mainly explained by shifts in the rate of inflation linked to the borrowing. A £1.7bn payment for the repurchase of military dwellings added to the total December figure.
Money blog: UK mortgage rules could be about to change. Donald Trump tries to negotiate TikTok sale on live TV as he defends Capitol riot pardons. Politics may stand in the way of economics when it comes to airport expansion. The data was revealed as Chancellor Rachel Reeves attends the World Economic Forum in Davos for a series of meetings with global business leaders in a bid to showcase the UK.
