Budget deficit falling sharply thanks to strong tax revenues

Government borrowing in December 2021 was £16.8 billion, down £7.6 billion on December 2020. Year to date borrowing of £146.8 billion is down 46.8 per cent on the same period last year and is £13.0 billion below our October forecast profile. That undershoot reflects stronger than expected receipts (thanks largely to a more resilient labour market and strong business profits) more than offsetting higher than expected spending.

Cumulative borrowing chart


Key publications

Medium-term forecasts

Five year forecasts for the UK economy and public finances and an assessment of whether the Government is likely to achieve its fiscal targets.

Long-term projections

50 year ahead projections for the UK public finances and public sector balance sheet analysis. Also the recent vehicle for our Coronavirus scenarios.

Forecast evaluation

Report into how our forecasts compare to subsequent outturn data and identifying lessons for future forecasts.

Welfare spending trends

An in-depth look at the drivers of welfare spending both inside and outside the Government’s welfare cap.

Fiscal risks

A report published every two years on the main risks to the public finances.

Monthly commentary

Our monthly commentary on the latest public finances data and how it compares to our most recent forecast.