The Office for National Statistics (ONS) has today revealed that the UK’s public finances deteriorated last month with net borrowing at £4.3 billion.
January is traditionally a strong month for tax receipts - due to income and corporation tax, according to the ONS.
However, tax income was lower than expected and it is the first borrowing figure for the month of January since records began.
Tax receipts fell 11.8% compared with January 2009, when the Government was able to repay more than £5 billion.
Meanwhile, for the financial year to date, public sector net borrowing has reached £122.4 billion and is on target to hit the £178 billion forecast by the Treasury.
Overall, debt stands at £848.5 billion - equivalent to 59.9% of GDP - the highest proportion for a January since the 1974 financial year.
Today’s figures are likely to put more pressure on the Government to provide detailed plans as to how it plans to reduce the UK’s spiralling debt levels.
Meanwhile, commenting on today’s figures, Andrew Goodwin, senior economic adviser to the Ernst & Young Item Club, said: “These are pretty ghastly figures and come as somewhat of a surprise.”
Over the last few weeks, leading business group’s have warned the Government about the UK’s debt levels.
According to David Kern at the British Chambers of Commerce (BCC), the UK’s credit rating is being put at risk by the Government’s failure to act more quickly.
Meanwhile, former IMF chief economist, Simon Johnson, recently warned that the UK’s debt levels should be seen in the same category of highly indebted countries such as Greece.
Leading economic think tank, the National Institute of Economic and Social Research, and a the Institute for Fiscal Studies have also both warned the Government over soaring UK debt levels.
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