UK public sector net borrowing falls in December
The Office for National Statistics (ONS) has today revealed public sector net borrowing totalled £15.3 billion in December – lower than forecasts of £18.1 billion and a fall from November‘s record high.
However, it was slightly above December 2009′s total of £14.3 billion.
The fall was attributed to the cost of Government support for Royal Bank of Scotland and Lloyds Banking Group, since this was the first time the ONS had included the cost of the support in the figures.
According to the ONS, public sector net debt now stands at 59.3% of UK GDP.
Meanwhile, in the financial year to December, borrowing fell to £118.4 billion compared with £126.8 billion in the same period a year earlier – a fall of 6.6%.
In other UK news today, the ONS revealed the economy contracted by 0.5% in the October to December period.
The figures shocked economists who had expected growth of between 0.2-0.5% after growth of 0.7% in the third quarter and 1.1% in the April to June period.