Borrowing soars to 60-year high

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Net borrowing rocketed by £8.1 billion, a record for the month, the Office for National Statistics (ONS) said.

This leaves borrowing between April and September at a mammoth £37.6 billion - outstripping the whole of last year and the highest for more than 60 years.

The figures come a day after Chancellor Alistair Darling said he was ready to spend his way out of a looming UK recession.

Mr Darling said in March's Budget that public sector net borrowing would reach £43 billion in the current financial year, before falling to £38 billion next year. But the economic slowdown means that sluggish growth in tax receipts has been outpaced by Government spending.

Capital Economics' Paul Dales said: "At this rate borrowing is on track to hit at least £60 billion in the full financial year. But much worse is to come - borrowing is set to rise above £100 billion in future years."

According to the figures, the Government's current receipts grew by £1 billion to £39.2 billion but expenditure jumped by almost £2 billion to £43.6 billion.

The detailed data also showed signs of the growing pressure on businesses as corporation tax revenues were 8% lower at £1.85 billion compared with the same month last year.

As well as slowing revenues, moves such as the £2.7 billion cost of resolving the 10p tax row and measures to help the housing market last month have added to the pressure on public finances.

The ONS will also be assessing the impact of the Government's nationalisation of Bradford & Bingley and last week's banking bail-outs on the national books.