According to official estimates, borrowing, which is the shortfall between spending and tax receipts, reached its highest December level in four years last month at £17.8 billion.
While the previous government’s cuts to National Insurance offset an increase in tax revenues, spending on public services, benefits, and debt interest increased during the year.
The government’s economic plans are in jeopardy due to recent increases in borrowing prices, and Reeves is under fire after data last week revealed that the UK economy had stagnated.
Although the government has stated that increasing economic growth is its primary objective in order to raise living standards, concerns about the state of the economy fuel rumors that Reeves may reduce public sector spending.
The Chancellor reiterated her commitment to deliver “further and faster”
