"In December 2014, Public Sector Net Borrowing was £13.1 billion, an increase of £2.9 billion compared with December 2013. For the year to date, borrowing was £86.3 billion, a decrease of £0.1 billion compared with the same period in 2013/14.
"In December, central government expenditure included a £2.9 billion European Commission budget contribution. This expenditure increased the public sector current budget deficit offsetting an overall modest improvement in the performance of the Treasury.
"Revenues in the year to date were up by 2.2% with a similar rise in expenditure up by 2.1%. VAT receipts appear to be particularly disappointing in December despite a 4% rise year to date. The interest bill will increase to over £50 billion in this financial year with a reduction in the gilt yield redemption from the Bank of England, exacerbating the debt service challenge for the Chancellor.
"The Chancellor still has some way to go if the OBR targets for the year are to be met. The EC bill upset the recovery plan in December. Great hopes are now placed on tax revenues due in the final quarter of the year."
NB: At the end of December 2014, public sector net debt was £1,483.3 billion (80.9% of GDP); an increase of £94.6 billion compared with December 2013.