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UK government borrowing fell in December thanks to a rise in tax receipts, despite a jump in the cost of repaying the national debt.
Public sector net borrowing, excluding state banks, dropped to £16.8bn last month, less than expected. That’s £7.6bn less than in December 2020, as the economy recovers from the impact of the pandemic.
It’s the fourth-highest December borrowing since monthly records began in 1993 (the UK borrowed more in both December 2009 and 2010 during the economic downturn following the global financial crisis).
Tax receipts rose by £6.2bn year-on-year, including a rise in corporation tax, stamp duty, income tax, VAT and fuel duty receipts.
Government spending fell by £1bn, as the furlough job protection scheme and support for self-employed workers wrapped up last autumn.
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