U.K. public sector net borrowing excluding interventions showed that the deficit narrowed to 13.7 billion pounds in December from 18.1 billion pounds, which was revised to 17.9 billon pounds, while estimates referred to 14.9 billion pounds deficit.

The deficit including government support for banks also saw a decline to 10.8 billion pounds compared with the revised 15.1 billon pounds, which was 15.2 billion pounds initially, and analyst's projections of 12.1 billion pounds.

The public sector net cash requirement reached 22.9 billion pounds from the prior 10.6 billion pounds and compared to 19.0 billion pounds expected.