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Sharp fall in government borrowing in December, figures show
Tax receipts rose £7.7 billion year-on-year, driven by income, corporation tax and VAT, reducing December borrowing by 38%, ONS reports.
- On January 22, 2026, the Office for National Statistics reported UK government borrowing in December 2025 was 11.6 billion pounds, down 38% from December 2024.
- Stronger revenues in December came from central government tax receipts rising £7.7 billion year‑on‑year, driven by income tax, corporation tax, VAT and higher employer national insurance contributions .
- Year‑to‑date figures indicate government borrowing is £140.4 billion, just £300 million lower than last year, with public spending rising by 3.2 billion in December.
- Chief Secretary to the Treasury James Murray said the government was stabilising the economy and reducing borrowing, while ONS senior statistician Tom Davies noted receipts rose strongly and spending only modestly.
- For investors, the near term hinges on inflation data and Bank of England guidance, as global bond markets and Japanese yields ahead of the Feb. 8 poll influence gilt yields.
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·United Kingdom
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Total News Sources20
Leaning Left4Leaning Right1Center6Last UpdatedBias Distribution55% Center
Bias Distribution
- 55% of the sources are Center
55% Center
L 36%
C 55%
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