UK PSNB Ex Banks (Dec) 11.58B vs. Exp. 14B (Prev. 10.94B, Rev. From 11.65B)

• The GBP 11.6bln borrowing figure in December was GBP 7.1bln or 38.0% less than December 2024 and the 10th highest December since monthly records began in 1993 (not adjusted for inflation).
• Borrowing in the financial year to December 2025 was GBP 140.4bln; this was £0.3blnor 0.2% less than in the same nine-month period of 2024, but still the third-highest April to December borrowing on record (not adjusted for inflation), after those of 2020 and 2024.

The UK Public Sector Net Borrowing (excluding banks) for December came in significantly lower than expected, at £11.58 billion compared to the £14 billion forecast. This suggests a potential improvement in the fiscal position relative to previous years, which could influence market expectations around future monetary policy and inflation dynamics in the UK.