Sterling reels as public debt hits new record

The Government borrowed £4.3bn in January, the first time there has been a budget deficit in January since records began in 1993.

The news sent sterling down 0.4% against the dollar, at $1.561, and down 0.3% against the Euro, at £0.8705. Figures released by the Office for National Statistics (ONS) show tax income was significantly lower than expected. Analysts had predicted the Government would repay around £2.8bn of its debts, but it instead ran a deficit of £4.3bn. Lower than forecast tax income and a sharp rise in public sector spending were blamed for the growth in national debt. Traditionally, January is a strong month for tax receipts, but both income tax and capital gains tax revenues saw a sharp fa...