UK borrowing jumps unexpectedly, adding to pressure on Rachel Reeves

Increase to 17.8bn is well above City forecasts and is highest December figure for four years

UK government borrowing jumped unexpectedly to 17.8bn last month, piling pressure on Rachel Reeves to plan budget cuts before a spending review in the summer.

Local authorities were the cause of much of the rise after they borrowed an extra 4.1bn in contrast to central government departments that stuck to borrowing limits, according to the Treasury's independent economic forecaster.