UK government borrowing narrows after EU credit

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UK government borrowing nearly halved in December from a year earlier, helped by a rebate from the European Union.

Public sector borrowing, excluding state-owned banks, fell to a lower-than-expected £2.6bn last month, a £2.5bn fall from December 2016.

The UK received a £1,2bn rebate from the EU due to a reduction in the bloc's budget and changes to contributions.

The Office for National Statistics (ONS) also noted the collapse of Carillion could affect public finances.The ONS said that the government had stated it would provide funding required by the Official Receiver to maintain public services.

"Any impact of these financial interventions on public sector finances will be announced in due course," it said. BBC News