Government borrowing falls by more than a third in December, figures show

"In December government borrowing - the difference between public spending and tax income - was 11.6bn, the Office for National Statistics (ONS) said. It is down 7.1bn - 38% - from the previous December, and lower than what many economists had predicted. Tom Davies, Deputy Director for the ONS public service division, said the fall was a result of "receipts being up strongly on last year whereas spending is only modestly higher"."

"The figures show the government received 7.7bn more an 8.9% rise - in taxes in December 2025 than it did in the same month in 2024. This comprised increases in income tax, corporation tax, VAT and National Insurance contributions (NIC), the ONS said with changes to the rate of NIC paid by employers coming into effect in April last year. According to provisional estimates, borrowing over the financial year to December totalled 140.4bn, about 300m lower than the same period in 2024, the ONS said."

UK government borrowing in December 2025 amounted to £11.6bn, down £7.1bn (38%) from December 2024. The December 2025 total was the tenth highest for that month since records began in 1993 when not adjusted for inflation, and remained above December 2023’s £8.1bn. Tax receipts rose by £7.7bn, an 8.9% increase, including higher income tax, corporation tax, VAT and National Insurance contributions, with employer NIC rate changes applied from April. Provisional figures show borrowing for the financial year to December was £140.4bn, about £300m lower than the same period in 2024. The government described the figures as part of stabilising the economy and reducing borrowing.

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