The UK’s public borrowing for December 2024 reached £17.8 billion, according to data from the Office for National Statistics (ONS), marking a £10 billion increase compared to December 2023. This figure is the third-highest public borrowing recorded for any December, reflecting growing fiscal challenges.
The surge in borrowing adds pressure on Prime Minister Keir Starmer’s Labour government and Chancellor of the Exchequer Rachel Reeves, as they face criticism over economic management amid a struggling economy. Reeves’ budget, which involves tax increases and higher borrowing to fund investment, is aimed at stimulating growth. However, these policies are under scrutiny as the UK grapples with inflation, a weaker pound, and volatility in the bond markets.
This rise in borrowing coincides with global trends of rising bond yields, but the UK’s situation has been compounded by a domestic economic slowdown, sparking concerns over fiscal sustainability.
