UK government borrowing hit a new record for the month of December of £15.7bn, less than analysts expected.
And total borrowing for the first nine months of the financial year was £120bn – the most since records began in 1946.
It shows the impact of recession on the UK’s finances, with tax revenues hit, and extra spending on measures to help the economy and on rising benefits.
But economists say the government could still hit its borrowing target for the current financial year.
Total current expenditure rose 7.5% on the year before to £44.9bn in December.
Analyst Jonathan Loynes at Capital Economics said concern about the UK’s finances and credit rating was unlikely to ease until “more decisive corrective action” was unveiled.
