UK Deficit Falls More Than Expected as Tax Revenues Jump (3)

UK government borrowing fell more than expected in December as strong tax receipts helped Chancellor of the Exchequer Rachel Reeves in her bid to bring the public finances under control.

Spending exceeded tax revenue by £11.6 billion ($15.6 billion), the Office for National Statistics said. The deficit was £7.1 billion less than a year earlier and below the £13 billion forecast by both the Office for Budget Responsibility and private-sector economists.

It left borrowing in the first of nine months of 2025-26 at £140.4 billion — £4.1 billion lower than forecast by the fiscal watchdog, which released a monthly breakdown ...