The UK economy fared well in December with a recession

Personal lending in the UK fell sharply than expected in December due to tax cuts and public spending while the economy improved.

Public lending is expected to be $ 16.8bn last month, $ 7.6bn less than in December 2020 when the mainland was banned, a report from the Office for National Statistics showed Tuesday.

Lending was lower than the £ 18.5bn that economists surveyed by Reuters but in line with what was predicted last October by the Office for Budget Responsibility.

Central government receipts were $ 68.5bn last month, up 10 percent compared to December 2020, boosted by strong tax receipts as the economy began to recover.

At the same time, the government spent £ 86.7bn, down £ 1bn from the same month last year, reflecting the savings from the retrenchment plan that expired in October.

However, some of the savings were reduced by spending more on the NHS Test and Trace program and the cost of vaccination. Interest rates have risen again compared to December 2020 due to rising interest rates on which gilt-linked indexes have stabilized.

In December, borrowing was £ 147bn, about half the same as last year.

Government debt – lending that increased over time – rose to about 96 percent of all household items, which had not been seen since the early 1960s.

Chancellor Rishi Sunak stated: “The risks of government spending, including inflation, make it extremely important for us to avoid burdening future generations with debt.”