UK Borrowing Falls, Raising Hopes of Tax Cuts in Upcoming Budget
• Lower UK government borrowing in December raises prospects of tax cuts in upcoming Budget • Borrowing fell to £7.8bn in December, much less than a year earlier, helped by sharply lower interest payments • Analysts say figures give Chancellor "wiggle room" for tax cuts while still meeting borrowing rules • Total debtremains very high at 97.7% of GDP, but outlook has improved with lower inflation • Chancellor hints he wants to cut taxes, citing benefits of lower taxes for economic growth