The August public sector borrowing figures are unchanged at £14.4bn, compared to the same period last year.
In July, there was £557m extra Government borrowing, meaning the period from April to August has seen borrowing increase 22 per cent higher on the previous year.
In August, corporation tax receipts fell 2.1 per cent as benefit payments rose 4.9 per cent.
Labour’s shadow Treasury financial secretary Chris Leslie says it represenst the highest borrowing figures ever in August and is down to the Government’s economic plan “failing”.
He says: “This is billions more in borrowing not to invest in the jobs of the future, but simply to pay for the mounting costs of economic failure as the double-dip recession leads to higher benefit bills and lower tax revenues.”
There are some positives for chancellor George Osborne as the Office for Budget Responsibility forecast, published in March 2012, showed an annual deficit of £126bn for 2011/12 but the ONS estimates it was £119.3bn.
At the end of August, the national debt stood £1,04trn at 66.1 per cent of gross domestic product, comapred to 62.7 per cent last year.
Last night, Bank of England governor Sir Mervyn King said it would be acceptable for the Government to miss its target of having falling debt by 2015 if it was caused by global low growth.