Rachel Reeves dealt fresh blow as UK borrowing soars in blow to Budget plans

plans to ramp up spending were thwarted when Treasury borrowing passed official forecasts made in the

Government borrowing rose by more than expected to £17.8 billion last month, the highest December figure for four years, according to official data.

The Office for National Statistics (ONS) said public sector net borrowing was £10.1 billion higher than the same month last year.

had predicted £14.1 billion of borrowing for December.

Liberal Democrat Treasury spokeswoman MP said: “This is yet another sign that the Chancellor’s Budget has not worked. It’s now putting people’s mortgages at risk and will make it even harder for the Chancellor to meet her borrowing rules.

“The answer to this is to turbo-charge growth by scrapping the jobs tax, and raising the necessary revenue for our NHS from the big banks and tech companies instead.”

The data covers a period when the UK cost of had been climbing but before the turmoil in global bond markets earlier this month that sent the yield – effectively the – on government debt surging.

Darren Jones, the chief secretary to the Treasury, said: “Economic stability is vital for our number one mission of delivering growth, that’s why our fiscal rules are non-negotiable and why we will have an iron grip on the public finances.

“Through our Spending Review we will interrogate every line of government spending for the first time in 17 years. We’ll root out waste to ensure every penny of taxpayer’s money is spent productively and helps deliver our Plan for Change.”

Ms Reeves and Business Secretary Jonathan Reynolds are currently at the World Economic Forum to promote UK investment.

Chancellor Ms Reeves announced on Tuesday that the spending review, when she is expected to reveal multi-year spending plans for Government departments, will take place on June 11.