Thu, 22 Jan 2026

Thu, 22 Jan 2026 Sharp fall in government borrowing in December, figures show

More money than expected was collected through tax and higher National Insurance Contributions, although public sector spending also increased.

* UK government borrowing fell sharply last month, down £7.1bn (38%) from December 2024
* Borrowing stood at £11.6bn in December, higher than the same month in 2023 (£8.1bn)
* Tax income rose by 8.9%, with increases in income tax, corporation tax, VAT and National Insurance contributions (NIC)
* Public spending increased by £3.2bn (3.5%), but was outweighed by the rise in taxes and NIC
* Borrowing over the financial year to December totalled £140.4bn, about £300m lower than the same period in 2024
* The borrowing figure was estimated as 4.6% of GDP, down from 4.8% in the same period last year
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