Summary
UK government borrowing decreased by over a third in December, thanks to increased tax revenue surpassing spending. Borrowing was £11.6 billion, which is £7.1 billion less than the previous December. Despite the drop, borrowing remains relatively high historically.
Key Facts
- Government borrowing in December was £11.6 billion.
- This figure is 38% lower than in December of the previous year.
- The drop in borrowing is due to an increase in tax income compared to spending.
- Taxes rose by 8.9%, or £7.7 billion, compared to December 2024.
- Income tax, corporation tax, VAT, and National Insurance contributions saw increases.
- Borrowing for the financial year up to December totaled £140.4 billion.
- Borrowing remains higher than in December 2023 when it was £8.1 billion.
- The UK government aims to reduce borrowing and stabilize the economy further.
