UK government borrowing falls to £11.6bn in December

Official figures show public sector net borrowing was £11.6bn in December, down from £18.7bn a year earlier, with year-to-date borrowing at £140.4bn.

The Office for National Statistics reported that public sector net borrowing in December was £11.6bn, compared with £18.7bn in the same month a year earlier. Receipts were stronger than a year earlier while spending rose only modestly. Economists had expected borrowing of about £13bn for December. The figures are monitored as part of the government's effort to reduce borrowing and manage debt interest costs. Key figures: - Public sector net borrowing in December: £11.6bn, down from £18.7bn a year earlier. - Economists had expected around £13bn in borrowing for December. - Receipts were notably higher year on year while overall spending was only modestly higher, according to the ONS. - Interest costs accounted for £9.1bn of December's £11.6bn borrowing. - Borrowing in the financial year to December was £140.4bn, down £300m on the same period last year, with prior months revised down by £3.5bn in total. Summary: Lower December borrowing narrows the monthly gap compared with the prior year and reflects stronger revenue receipts. The Office for Budget Responsibility projects public sector net borrowing for the financial year will fall to £138bn and decline in subsequent years, while officials note interest costs were a major component of December borrowing and could change with future monetary policy developments.