UK public sector borrowing widens more than expected

UK public sector net borrowing (excluding banks) climbed to £17.81 billion in December 2024, up from a revised £11.8 billion in November and surpassing forecasts of £14.1 billion.

UK public sector borrowing widens more than expected

Public sector spending rose £13 billion year-on-year to £112.2 billion, driven by increased costs for public services, benefits, debt interest, and capital transfers. Receipts grew by £2.9 billion to £94.4 billion, with higher central government tax revenues partially offset by lower compulsory social contributions.

Full year figures

For the financial year through December, borrowing totaled £129.9 billion—£4.1 billion higher than the OBR’s £125.9 billion forecast—marking the second-highest figure for this period since records began in January 1993.