A worker stands beneath a TX electric taxi inside the LEVC (London Electric Vehicle Company) factory in Coventry. File Photo: Phil Noble/Reuters
The UK government sank deeper into debt in December as rising debt-interest payments and the cost of insulating consumers and businesses from the energy-price shock strained the public finances.
The budget deficit stood at a record £27.4 billion ($34 billion), almost triple the £10.7 billion shortfall a year earlier, the Office for National Statistics said
Tuesday. Economists had forecast a reading of £17.3 billion.
That was driven by a £17.3 billion pound increase in debt interest costs, the biggest December jump ever.
The figures underscore risks to the UK economy as Prime Minister Rishi Sunak struggles to contain inflation near a four-decade high and strikes crippling the public services. A recession likely this year is expected to further dry up tax revenue and expand the deficit.
