FX.co ★ UK Budget Deficit Widens In December

In December, the United Kingdom's budget deficit more than doubled compared to the same month the previous year, primarily due to a significant increase in government spending that outpaced the growth in revenue, according to the Office for National Statistics' report released on Wednesday.

Public sector net borrowing rose by £10.1 billion from the prior year, reaching £17.8 billion in December. This constitutes the highest December borrowing level in four years and exceeds the £14.6 billion estimate provided by the Office for Budget Responsibility.

Additionally, borrowing to support day-to-day public sector operations increased by £7.3 billion to £10 billion, marking the largest December deficit in two years. Data indicates that the interest payable on central government debt amounted to £8.3 billion in December, which is £0.5 billion more than the £7.8 billion predicted by the OBR.

For the financial year up to December, borrowing totaled £129.9 billion, reflecting an £8.9 billion increase over the same period in the previous fiscal year.