Source: Office for National Statistics
The British government borrowed £16.8B to balance its books last month as the public finances felt the impact of rising inflation. FTSE 100 up +0.88%, GBP USD down -0.31%
- Rising tax receipts were partly offset by a rapid increase in interest payments of the £2trillion national debt, increased by the emergency measures to support the economy in the last two years.
- The debt interest payments surged to a six-month high of £8.1 billion after a rapid increase in inflation. Repayments on some of the UK’s borrowing is tied to the cost of living.
- The UK’s budget deficit was £7.6 bn, significantly lower at £16.8bn than in the same month prior year and stood below the £18.5 bn anticipated by the City.
- Tax receipts in December increased by £6.2 bn compared to the prior year, including an increase in corporation tax, stamp duty, income tax, VAT, and fuel duty receipts.