POLL OF THE DAY: As the economy struggles - Should Rachel Reeves prioritise reducing debt or economic growth?
WATCH: Economist discusses the state of the economy
GB News
UK public borrowing surged to £17.8billion in December, marking the highest December borrowing in four years.
The figure came in 25 per cent above economist predictions, according to data released by the Office for National Statistics (ONS).
The unexpected increase in borrowing costs has raised concerns about the state of public finances, despite Chancellor Rachel Reeves maintaining confidence in the country's financial health following the October budget.
The significant rise was primarily attributed to high debt interest costs and a one-off military housing purchase. The December borrowing figure represents a £10.1billion increase compared to the same period last year.
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POLL OF THE DAY: As the economy struggles - Should Rachel Reeves prioritise reducing debt or economic growth?
GB News
Economists had forecast public sector net borrowing would reach £14.1billion for the month.
The market pressures come amid recent financial turbulence, with the pound falling to a nine-month low against the dollar two weeks ago. UK 10-year borrowing costs have climbed above 4.8 percent.
The yield on 30-year gilts has reached 5.36 percent, its highest level since 1998.
The Chancellor's £9.9billion fiscal headroom is at risk of being completely erased, according to economic experts.
A total of 63 per cent of GB News members who voted in the poll said Rachel Reeves should prioritise economic growth, while 37 per cent agreed that the Chancellor should focus on reducing debt.
With that in mind, as the economy struggles - Should Rachel Reeves prioritise reducing debt or economic growth? Have your say by commenting below.
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