People, families and businesses across our community are concerned about decisions made by the Chancellor and the impact they will have on their finances.
The question is: will she increase taxes, cut public services or borrow more to mitigate the growing interest costs to the national debt (you can read more about this here: https://www.bbc.co.uk/news/articles/c1404j3xmxdo).
Today’s public sector finances report from the ONS sets out how this Government is already borrowing more and how the interest the UK is paying on debt has increased simultaneously.
Here are some key figures from the report:
- Borrowing – the difference between public sector spending and income – was £17.8 billion in December 2024; this was £10.1 billion more than in December 2023 and the highest December borrowing for four years.
- The current budget deficit – borrowing to fund day-to-day public sector activities – was £10.0 billion in December 2024; this was £7.3 billion more than in December 2023 and the highest December current budget deficit for two years.
- The interest payable on central Government debt was £8.3 billion in December 2024, largely because of movements in the Retail Prices Index; this was £3.8 billion more than in December 2023 and the third-highest December figure since monthly records began in January 1997.
You can read the full report here: https://www.ons.gov.uk/economy/governmentpublicsectorandtaxes/publicsectorfinance/bulletins/publicsectorfinances/december2024
