Borrowing at its highest level in four years, but Reeves insists finances ‘now in order’

The Chancellor is under more pressure as official figures shows government borrowing in December is at its highest level in four years.

The Office for National Statistics (ONS) said in December public sector borrowing was £17.8 billion.

Government borrowing was £10.1 billion higher than last year for the same period and economists had predicted borrowing would be around £14.1 billion.

The ONS said most of the borrowing was down to a £8.3 billion debt interest bill, this was the third highest December total ever recorded.

There was also a £1.7 billion payment for rebuying military homes, this added to the borrowing.

Rachel Reeves confirmed the economic forecast is “tight,” the Chancellor added, “those fiscal rules are important to us because they are the bedrock, the foundation of that stability that I’ve spoken about.”

Speaking in Davos, Switzerland at the World Economic Forum Reeves said the UK’s finance are “now in order” due to her Autumn Budget.

The Chancellor said, “Now we have wiped the slate clean, my instinct is to have lower taxes, less regulation, make it easier for businesses to do business.”

Reeves defended her decisions over public finances, she said, “We will continue to make decisions to ensure that we meet those fiscal rules.”