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Blow to Reeves as UK borrowing unexpectedly jumps

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Government borrowing rose more than expected in December to hit its highest level for the month for four years, piling more pressure on the UK’s finances.
Borrowing – the difference between spending and tax revenue – was £17.8bn last month, £10.1bn more than in December 2023, official figures show.
Spending on public services, benefits, and debt interest were all up on the year, while an increase in tax receipts was offset by National Insurance cuts made by the previous government.
Recent spikes in borrowing costs threaten the government’s economic plans, with Chancellor Rachel Reeves facing pressure after figures last week showed the UK economy had flatlined.
The government has said economic growth is its top priority in order to boost living standards, but fears over the health of the UK economy adds to speculation that Reeves could cut spending on public services.
The total £17.8bn borrowed by the government last month was much higher than the £14.6bn forecast by the Office for Budget Responsibility, the UK’s official forecaster.
Interest charged on government debt hit £8.3bn, marking the third-highest December debt interest repayments since monthly records began in 1997.
Earlier this month the interest rates charged on government debt surged in part due to concerns over the UK’s economic outlook, before falling back.

On Wednesday, the interest rate charged on UK government debt over a 10-year period retreated to 4.5%, near to where it was at the start of the year.
During her visit to the World Economic Forum in Davos, Switzerland, Reeves played down the impact the recent market turbulence would have on her meeting her self-imposed borrowing rules, which aim to maintain credibility with financial markets and taxpayers.
The chancellor has made the trip to the event to drum up investment in the UK among the world’s biggest business leaders and financiers.

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TikTokers offered $5,000 to join Facebook and Instagram

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Social media giant Meta has offered to pay up to $5,000 (£4,040) to popular creators in the United States who join Facebook and Instagram.
It says those joining from “third-party social apps” will get cash based on “an evaluation of your social presence”.
Though it does not mention TikTok by name, the timing would suggest Meta is attempting to capitalise on the uncertainty surrounding its rival, as questions swirl about whether President Trump can find a way of preserving it for US users.
TikTok says it has 170 million users in the US – with many of them relying on it for their livelihoods – meaning lots of people would be seeking an alternative place to post if the platform disappeared.
Meta says on its website that those accepted into the so-called “Breakthrough bonus programme” will be paid the money during their first 90 days on the app, so long as they post regularly.
Users must post at least 20 reels on Facebook and 10 reels on Instagram – Meta’s version of vertical TikTok videos – during each 30-day period.
It also dictates that these must be original videos, rather than those previously shared on other platforms.
But not everyone can join – the cash will only be available to those people who are completely new to either Facebook or Instagram.
And the firm will seemingly decide who to accept on a case-by-case basis, as people must apply to be accepted onto the programme.
It is also offering other perks, such as a free subscription to its blue check verification system.

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Trump considers 10% tariff on China from February

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US President Donald Trump has said he is considering imposing a 10% tariff on imports of Chinese-made goods as soon as 1 February.
Trump said discussions with his administration were “based on the fact that they’re sending fentanyl to Mexico and Canada”.
He called China an “abuser”. China responded saying trade wars have “no winners”.
Despite the aggressive talk, the 10% tariff would be much less than the 60% tariff Trump mentioned on the campaign trail.
Trump’s comments followed his threats to levy import taxes of 25% on Mexico and Canada, accusing them of allowing undocumented migrants and drugs to come into the US.
In a press conference in Washington on Tuesday, Trump also vowed to hit the European Union with tariffs.
He said the EU “treat us very, very badly”.
“So they’re going to be in for tariffs. It’s the only way you’re going to get back. It’s the only way you’re going to get fairness.”
China’s foreign ministry spokeswoman Mao Ning responded to Trump’s threats by promising to “safeguard its national interests”.
“We have always believed that trade wars and tariff wars have no winners,” she added.
Shortly after he was sworn in on Monday, the new president also instructed federal agencies to conduct a review of existing trade deals and identify unfair practices by US trading partners.
Meanwhile, a top Chinese official spoke out against protectionism at the World Economic Forum in Davos.
China’s Vice Premier, Ding Xuexiang, called for a “win-win” solution to trade disputes without mentioning the US.
The Canadian Prime Minister Justin Trudeau has promised to fight back.
“If the [US] president does choose to proceed with tariffs, Canada will respond – and everything is on the table,” Trudeau said.
Ottawa is preparing counter-tariffs in response to the threat, reportedly worth billions of dollars.
Canada, China and Mexico are the top US trading partners.
Tariffs are an important part of Trump’s economic plans. The president believes they can boost growth, protect jobs and raise tax revenue.
But many economists say such measures could lead to higher prices for Americans and harm companies hit by foreign retaliation.

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Netflix to raise prices as new subscribers soar

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Netflix will raise prices across a number of countries after adding nearly 19 million subscribers in the final months of 2024.
The streaming firm said it will increase subscription costs in the US, Canada, Argentina and Portugal.
Asked if prices were set to increase in the UK, a spokesperson for Netflix said there was “nothing to share right now”.
Netflix announced better-than-expected subscriber numbers, helped by the second series of South Korean drama Squid Game as well as sports including a boxing match between influencer-turned-fighter Jake Paul and former world heavyweight champion Mike Tyson.
In the US, prices will increase across almost all plans including the standard subscription with no adverts which will now cost $17.99 (£14.60) a month, up from $15.49.
Its membership with adverts will also rise, by one dollar to $7.99.
The last time Netflix raised prices in the US was October 2023, when it also lifted costs for some plans in the UK.
“We will occasionally ask our members to pay a little more so that we can re-invest to further improve Netflix,” it said.
Meanwhile, the company said it finished last year with more than 300 million subscribers in total. It had been expected to add 9.6 million new subscribers between October and December but far surpassed that number.
It is the last time that Netflix will report quarterly subscriber growth – from now on it said it will “continue to announce paid memberships as we cross key milestones”.
As well as Squid Game and the Paul v Tyson fight, Netflix also streamed two NFL games on Christmas Day.
It will also broadcast more live events including WWE wrestling and has bought the rights for the FIFA Women’s World Cup in 2027 and 2031.
Paolo Pescatore, a technology analyst at PP Foresight, said Netflix “is now flexing its muscles by adjusting prices given its far stronger and diversified programming slate compared to rivals”.
Net profit between October and December doubled to $1.8bn compared to the same period a year ago.
Sales rose from $8.8bn to $10.2bn.

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