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Money Minute Friday 20 December: public sector borrowing in the UK

Today's Money Minute – the last of the year – looks ahead to the latest data on public sector net borrowing, which gives us a snapshot of government spending.

In the UK this morning, we get the latest data on public sector net borrowing.This gives a snapshot of government spending.

In the first seven months of this financial year, borrowing was 10% higher than last year.That's because while tax receipts were higher this year, government spending was higher still.

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Given that the government wants to turn on the spending taps next year, the press might pay more attention to this release than usual.But ultimately, from a market impact perspective, it's not particularly consequential in these days of low interest rates.

Markets may one day start to care about high levels of government borrowing a lot more than they do now.If inflation picks up, it will become an issue.But there's little sign of the so-called "bond vigilantes" returning to haunt markets quite yet.

That's all from us here at Money Minute for this year. We'll return on Monday 6 January. In the meantime, have a wonderful Christmas and a very happy New Year.

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