Britain’s net debt hits record £1 trillion

Britain’s state borrowing fell by more than expected last month but not by enough to prevent its net debt from reaching a record high £1 trillion (€1.194 trillion), official data showed yesterday.

Public sector net borrowing excluding the government’s interventions in the financial sector hit £13.7 billion in December, the Office for National Statistics said in a statement.

That undershot market expectations for £14.9 billion, according to analysts polled by Dow Jones Newswires, and compared with net borrowing of £15.9 billion in December 2010.

Net borrowing fell as the government’s taxation revenues increased at a faster pace than expenditure, according to the ONS.

However the data showed net debt excluding the temporary effects of financial interventions hit £1.0 trillion in December and public sector net debt as a percentage of gross domestic product rose to 64.2 per cent, both the highest levels since comparable records began in 1993.

The government has forecast public sector net borrowing to hit £127 billion, or 8.4 per cent of GDP, in the financial year ending in April.