Data published by the Office for National Statistics showed that in December, net borrowing by the public sector, excluding state-owned banks, rose to 16.8 billion pounds compared with 14.7 billion pounds in November (revised from 17.4 billion pounds). Economists had expected borrowing to increase to 18.5 billion pounds.
The ONS also reported that since the beginning of the financial year (from April to December 2021), the volume of borrowings has decreased by 129.3 billion pounds in annual terms, to 146.8 billion pounds.
Meanwhile, corporate tax receipts reached a record high in December - 5.5 billion pounds. The ONS reported that this result reflects the quarterly payment of taxes by large companies, and added that the record value was recorded at current prices.
"The risks to public finances, including those associated with high inflation, reinforce the importance of reducing borrowing. Our fiscal rules mean that we will reduce our debt burden by continuing to invest in the future of our country," said the British Finance Minister.