The latest figures, which are officially released on Wednesday, show public sector borrowing – excluding financial interventions such as bank bailouts – fell £2.2 billion to £13.7 billion last month, a bigger fall than the City’s estimate of £14.9 billion.
The bigger than expected fall in government borrowing during December was partly offset by a £1.3 billion increase in estimates for borrowing between April and November after local government spending was revised upwards.
However, the report shows that the fall still wasn’t enough, with the net debt rising to £1,003.9 billion (64.2% of the GDP) and the highest since records began in 1993.
Despite the figures increasing, the Chancellor, George Osborne, is still on track to hit a target set by the Office for Budget Responsibility to reduce the UK’s borrowing to £127 billion in the financial years – despite fears the UK is on the brink of recession.
For more information, please contact Glazers, Chartered Accountants London or visit www.glazers.co.uk
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