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Borrowing shoots up to a record high
21.05.09
Standard & Poor's report on Britain's staggering debt came as official figures showed borrowing at a record high.
The Treasury borrowed £8.5 billion last month, a record for any April and more than four times the £1.8 billion it borrowed in the same month last year, Office for National Statistics figures showed.
That sent Government debt up to £754 billion, or 53.2% of gross domestic product, well above the 42.9% this time last year and the 40% limit set by Gordon Brown when he was Chancellor.
Alistair Darling last month announced plans to borrow a record £175 billion this year to cover the shortfall between spending and tax receipts.
The recession has sharply reduced Government tax receipts, especially from the corporate sector and bonus payments in the financial sector.
Meanwhile, the Government is having to pay out more in benefits.
The tax take in April of £38.8 billion was down nearly 10% on last year while spending was up more than 5% to £48.8 billion.
