Britain's economic recovery has won further traction as official data revealed a faster-than-expected drop in unemployment alongside a reduction of the country's deficit.
The drop in unemployment to 7.1 per cent, the lowest level in almost five years, increased the prospect of higher British interest rates from a record-low level before the end of 2014, according to analysts.
The data, meanwhile, further boosted Prime Minister David Cameron's coalition government ahead of next year's general election.
"The biggest quarterly increase in employment on record. More jobs means more security, peace of mind and opportunity for the British people," Cameron said on Twitter on Wednesday.
The Office for National Statistics (ONS) revealed that unemployment in the three months to the end of November fell from a rate of 7.4 per cent in the quarter through to the end of October.
But wage growth remained muted at 0.9 per cent in the three months to November, helping to keep a lid on inflation and in turn a need to raise interest rates.
The ONS added that British state borrowing fell sharply last month, as stronger economic growth resulted in record tax revenues.
Public sector net borrowing, the government's preferred measure of the deficit, slid to STG12.1 billion ($A22.7 billion) in December, compared with STG14.2 billion in the same month of 2012.
Share
