UK public sector borrowing hits record high

UK public borrowing rose to a record high in August, at £15.9bn, dwarfing the £12.51bn economists had predicted.

The figure is the largest August deficit since records began in 1993, and casts serious doubt on the strength of public finances. The Budget deficit was £13.3bn in August, while net debt excluding the effects of financial interventions was £823.3bn, or 56.3% of GDP. Sterling did not move in response to the data, suggesting markets are convinced by the coalition Government's plans to cut the deficit. Mark Bolsom, head of the UK trading desk at Travelex Global Business Payments, says: "Tax receipts are still rising so Chancellor Osborne won't have to revise his current borrowing fore...