The figure represents a £7.1 billion decrease, or 38%, from December of the previous year. Tom Davies, Deputy Director for the ONS public service division, attributed the decline to a strong increase in receipts compared to a modest rise in spending.

Despite the year-over-year decrease, December's borrowing remained higher than the £8.1 billion recorded in December 2023. The £11.6 billion figure also marks the tenth highest December borrowing since records began in 1993, without adjusting for inflation.

The government's tax receipts in December 2025 increased by £7.7 billion, an 8.9% rise, compared to the same month in 2024. This increase was driven by higher income tax, corporation tax, VAT, and National Insurance contributions.

Economists had predicted a higher borrowing figure for December. The actual figures may prompt debate about the government's fiscal policy and its impact on the national debt. The government has emphasized its commitment to fiscal responsibility and sustainable public finances. The opposition has argued that the figures do not reflect the true state of the economy and that further measures are needed to address the cost of living crisis.

The ONS data provides a snapshot of government finances for a single month. The overall trend in government borrowing will become clearer as more data is released in the coming months. The figures will be closely watched by economists, policymakers, and the public as they assess the health of the UK economy.