UK December budget deficit exceeds forecast

By Aya El Sayed On Jan 22, 2025

UK public sector net borrowing was £17.8 billion in December, new Office for National Statistics figures show - Credit: RTÉ

UK budget deficit widened more than expected in December, driven by high debt interest payments and a one-off military housing purchase, the Office for National Statistics (ONS) reported on Wednesday.

Public sector net borrowing reached £17.8 billion ($21.93 billion), surpassing the £14.1 billion median forecast by economists polled by Reuters.

Debt interest payments alone amounted to £8.3 billion, marking the third-highest December total on record. Additionally, a £1.7 billion payment for repurchasing military dwellings further increased borrowing.

Over the first nine months of the 2024/25 financial year, Britain has borrowed £129.9 billion, exceeding the Office for Budget Responsibility’s projection of £125.9 billion for the period. The figures underscore the fiscal challenges facing Finance Minister Rachel Reeves.

Attribution: Amwal Al Ghad English, Reuters
Subediting: M. S. Salama