Overview
- The ONS reported £11.6 billion of borrowing in December, down from £18.7 billion a year earlier.
- Tax receipts rose by £7.7 billion year on year, driven by income tax, corporation tax, VAT and higher national insurance, reflecting recent increases under Chancellor Rachel Reeves.
- Borrowing from April to December reached £140.4 billion, just £300 million lower than the same period a year earlier.
- Public sector net debt stood at 95.5% of GDP, up 0.9 percentage points compared with December 2024.
- Debt interest payments were £9.1 billion in December, £200 million higher year on year, and the month still ranked as the 10th-highest December for borrowing since records began.