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The Independent UK

Business

Howard Mustoe

The UK government’s £18bn borrowing costs are higher than expected - how did we get here?

United Kingdom Rachel Reeves United States Covid-19 Deficit World Economic Forum

Government borrowing jumped to £17.8bn in December, the highest level in four years and £3.2bn more than forecast.

The deficit was the highest for any December since 2020 - the height of the pandemic - when the government was forced to prop up closed businesses and spend billions of pounds on medical equipment because of the Covid lockdowns.

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