“Interest costs accounted for £9.1bn of the £11.6bn of net government borrowing in December. However, with interest rate cuts expected later this year and the eventual ending of the Bank of England’s quantitative tightening programme on the horizon, the Treasury could see a marked decline in borrowing costs, potentially creating more room for public spending.
“Today’s data means that total borrowing for this year is likely be slightly below the OBR’s November forecast. On current trends, borrowing for the 2025/26 fiscal year could reach £131.8bn.”
