UK public sector net borrowing was much higher than expected in December, figures released by the Office of National Statistics showed on Wednesday.

PSNB totalled £17.81 billion in December, up from £11.8 billion in November. The November figure was revised up from £11.25 billion, and the December one far outpaced FXStreet-cited market consensus of £13.4 billion.

The pound was steady following the report. It was quoted at $1.2322 early Wednesday in London, up slightly from $1.2319 late Tuesday.

The £17.81 billion figure was £10.1 billion more than in December 2023 and the highest December borrowing for four years, the ONS noted.

Also, it reported that the current budget deficit was £10.0 billion in December, the highest deficit for that month in two years. This meant the government borrowed £7.3 billion more to fund day-to-day public sector activities than in December 2023.

For the year that ended December, UK government borrowing totalled £129.9 billion.

The ONS said this was £8.9 billion more than in 2023 and the second-highest calendar year borrowing since monthly records began in 1993.

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