UK government borrowing at record December high due to energy support and debt interest – business live

LIVE – Updated at 08:04 Government borrowing surges to £27.4bn as debt interest jumps to £17.3bn, also the highest December figure on record, limiting the

chances of big budget giveaways. Borrowing overshoot limits chances of big budget giveaways 08:04 The borrowing overshoot further limits chances of big budget

giveaways, says Ruth Gregory, senior UK economist at Capital Economics. December’s public finances figures provided more evidence that the government’s fiscal

position is deteriorating fast. And high government spending in the early months of 2022/23 and the pressures from the weakening economy implies borrowing will come in at about

£175bn, broadly in line with the OBR’s forecast of £177bn, but a huge £52bn above the 2021/22 total. Total tax receipts in December, at £74.6bn, were higher than last

December’s £70.6bn. But the recent rises in RPI inflation (to which index-linked gilts are pegged) caused eye-watering high debt interest payments of £17.3bn (OBR forecast:

£17.1bn), the highest December figure since records began. Meanwhile, the Chancellor’s energy support added £9.1bn. As a result, total public expenditure came in at £91.2bn, a

whopping £16.4bn higher than last December, although that was still a bit lower than the £91.6bn the OBR had expected.