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Public sector borrowing rises in December

22 January 2013 #Policy #Top Stories

Public sector borrowing increased slightly more than had been predicted in December according to new figures released by the Office for National Statistics today.

Excluding the support for banks and quantitative easing, borrowing rose to £15.4 billion, £0.6 billion up on the same month in 2011.

Ratings agencies have put the UK’s AAA credit rating on watch in response to the total which is around £200 million higher than had been expected.

The latest figures also show that total borrowing in the last three quarters of 2012 was £106.5 billion, excluding Royal Mail pension asset transfers, £7.2 billion more than the same period in 2011.

Public sector net debt was £1.1 trillion at the end of December 2012, equivalent to 70.7 per cent of gross domestic product (GDP). The latest GDP results are due to be announced this Friday January 25.