UK records highest December budget deficit
Data offers little room for UK39;s Hunt to manoeuvre
Debt interest bill hits new high for December

LONDON, Jan 24 Reuters Britain39;s government borrowed more last month than in any December since monthly records began 30 years ago, reflecting the huge cost of energy support and soaring debt interest linked to rising inflation.

The Office for National Statistics ONS said public sector net borrowing, excluding stateowned banks, was 27.4 billion pounds 33.97 billion in December, up from 10.7 billion pounds a year earlier.

A Reuters poll of economists had pointed to borrowing of 17.75 billion pounds for December.

The ONS said the large figure for borrowing in December was mostly down to a sharp rise in spending on energy support schemes and an increase in debt interest.

Overall, today39;s worsethanexpected public finances figures will only embolden the Chancellor in the Budget on March 15 to keep a tight grip on the public finances, Ruth Gregory, an economist at Capital Economics, said.

She added that finance minister Jeremy Hunt would likely need to wait until closer to the next general election due in January 2025 at the latest before he can announce tax cuts.

In response to the data, Hunt said it was vital that the government stuck to its goal of halving inflation which most economists think will happen naturally, due to a base effect and lower energy prices and growing the economy.

Debt interest accrued by the…