UK government borrowing was significantly lower last month, due to more income from taxes and higher National Insurance Contributions outweighing spending, figures show.

In December government borrowing – the difference between public spending and tax income – was £11.6bn, the Office for National Statistics (ONS) said.

It is down £7.1bn – 38% – from the previous December, and lower than what many economists had predicted, but still higher than that borrowed in the same month in 2023.

Tom Davies, Deputy Director for the ONS public service division, said the fall was a result of “receipts being up strongly on last year whereas spending is only modestly higher”.

Despite the annual fall, the December 2025 figure was the tenth highest for the month since records began in 1993, without adjusting for inflation.

And it remains higher than December 2023, when borrowing stood at £8.1bn.

The figures show the government received £7.7bn more – an 8.9% rise – in taxes in December 2025 than it did in the same month in 2024.

This comprised increases in income tax, corporation tax, VAT and National Insurance contributions (NIC), the ONS said – with changes to the rate of NIC paid by employers coming into effect in April last year.

According to provisional estimates, borrowing over the financial year to December totalled £140.4bn, about £300m lower than the same period in 2024, the ONS said.

The borrowing figure was estimated as 4.6% of GDP – 0.2 percentage points down from the same period last year.

It was the third-highest level of borrowing over April-December on record, after those in 2020 and 2024.

Chief Secretary to the Treasury, James Murray, said the government was “stabilising the economy, reducing borrowing, rooting out waste in the public sector”.

He said: “Last year we doubled our headroom and we are forecast to cut borrowing more than any other G7 country with borrowing set to be the lowest this year since before the pandemic.”

Ruth Gregory, deputy chief UK economist at Capital Economics, said public finances were “finally showing signs of improvement in recent months”.

“What’s more, a further improvement in January is on the way. Those figures will probably show a bumper set of self-assessment tax and capital gains tax (CGT) receipts reflecting the freeze on income tax thresholds and a disposal of assets due to the speculation that Reeves would raise CGT.”

But she said the “big picture is that the pace of deficit reduction remains very slow”.

New traffic rules: The Indian government has introduced a new rule aimed at making roads safer by targeting traffic rule violators. According to the updated Motor Vehicles Rules, drivers who commit five or more traffic offences in one year could face suspension or cancellation of their driving licence. This change is part of a broader effort to reduce road accidents and encourage responsible driving.

Under the new guidelines, which are being applied from January 1, 2026, the licensing authority – such as the Regional Transport Office (RTO) or district transport office – now has the power to suspend or revoke a driving licence if a driver repeatedly breaks traffic rules within the same year. Earlier, licence suspension powers were mostly limited to serious offences like reckless driving or vehicle theft.

Key things to keep in mind: 

Rule: Five or more traffic violations in one year can lead to driving licence suspension or revocation.

Authority: RTO or district transport office can take action based on the offence count.

Violations Count: Only offences within the same calendar year are considered.

Types of Offences: Includes serious and less serious violations (e.g., red light jumping, no helmet).

Driver Hearing: Drivers are generally given a chance to explain before final action.

Objective: To reduce repeat traffic violations and improve road safety.

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How the new rule works?

The offence count is based on traffic violations committed within the same calendar year. If a driver commits five or more violations, even if they are less serious –such as jumping red lights or not wearing a helmet or seat belt –the authorities can take action. However, before any licence cancellation or suspension, the driver is usually given a chance to explain their side to the authorities.

Traffic experts say this move is significant because it holds habitual offenders accountable rather than just one-time violators. With more vehicles and faster traffic growth in Indian cities, road safety has become a priority for both central and state governments. Traffic regulators are also using automated systems such as e-challans and cameras to better track violations and help implement this rule effectively.

Road safety is one of the major concerns in India, with thousands of incidents reported every year due to traffic violations.

Gold and silver prices declined in both international and domestic markets on Thursday. In the international bullion market, the price of gold fell by $8 per ounce to $4,832.

After the decline in the global market, gold prices in Pakistan also registered a drop. The price of gold per tola decreased by Rs800 to Rs505,562, while the price of 10 grams of gold fell by Rs686 to Rs433,437.

Silver prices also edged lower. The price of silver per tola dropped by Rs30 to Rs9,903, while the price of 10 grams of silver declined by Rs25 to Rs8,490.

Spot gold was steady at $4,836.09 per ounce, as of 0740 GMT, after scaling a record peak of $4,887.82 in the previous session.

US gold futures for February delivery ‌also traded flat at $4,838.60 per ounce.

Spot silver rose 1.1% to $94.26 an ounce, after hitting ‍a record high of $95.87 on Tuesday.

Spot platinum lost 0.4% to $2,472.33 per ounce after touching a record peak of $2,511.80 on ​Wednesday, while palladium gained 0.6% to $1,850.31.

Read: Gold prices hit record highs in global, Pakistan markets

Earlier on Wednesday, gold and silver prices reached new historic highs in both international and local markets.

In the international bullion market, the price of gold per ounce jumped sharply by $127 to reach a new high of $4,840.

In Pakistan, the price of gold per tola rose by Rs12,700 to a record level of Rs506,362.

Similarly, the price of 10 grams of gold increased by Rs10,888 to reach Rs434,123.

Silver prices also rose, with the price per tola increasing by Rs64 to a new high of Rs9,933, while the price of 10 grams of silver went up by Rs54 to Rs8,515.