The UK government borrowed a record amount last month, Office for National Statistics (ONS) data shows.
The UK government borrowed a record amount last month, Office for National Statistics (ONS) data shows.
Public sector net borrowing hit £8.092bn in September, up from £4.775bn in the same period a year earlier, marking a record for the month.
Public sector net borrowing hit £8.092bn in September, up from £4.775bn in the same period a year earlier, marking a record for the month.
The amount borrowed this financial year stands at £37.6bn so far - more than the total amount borrowed in 2007.
The amount borrowed this financial year stands at £37.6bn so far - more than the total amount borrowed in 2007.
The government has said it will keep investing money into public works to prevent a recession.
The government has said it will keep investing money into public works to prevent a recession.
On a net cash requirement basis the government borrowed £12.65bn last month, compared with a deficit of £8.72bn in the same period a year ago.
On a net cash requirement basis the government borrowed £12.65bn last month, compared with a deficit of £8.72bn in the same period a year ago.
The public finances are in a complete state and in much worse shape than a year ago Ernst &Young Item Club This was also more than expected; analysts had forecast that public borrowing would reach around £10.1bn in September.
The public finances are in a complete state and in much worse shape than a year ago Ernst &Young Item Club This was also more than expected; analysts had forecast that public borrowing would reach around £10.1bn in September.
The cumulative borrowing for the period from April to September of £37.59bn is up from the £21.46bn borrowed in the same period a year earlier and represents the largest total for a six month period since records began in 1946.
The cumulative borrowing for the period from April to September of £37.59bn is up from the £21.46bn borrowed in the same period a year earlier and represents the largest total for a six month period since records began in 1946.
"It confirms what we pretty much all know," said Paul Dales, an economist at Capital Economics.
"It confirms what we pretty much all know," said Paul Dales, an economist at Capital Economics.
Borrowing is set to surge and rise dramatically in the current financial year".
"Borrowing is set to surge and rise dramatically in the current financial year."
Slowdown
Slowdown
The figures come a day after Ernst & Young Item's Club said the UK economy was already in a recession and would see the economy shrink by 1% next year, before growing by 1% in 2010.
The figures come a day after Ernst & Young Item's Club said the UK economy was already in a recession and would see the economy shrink by 1% next year, before growing by 1% in 2010.
In response to the latest figures the Item Club said: "The UK's public finances are in a complete state and in much worse shape than a year ago".
In response to the latest figures the Item Club said: "The UK's public finances are in a complete state and in much worse shape than a year ago".
Figures later this week are expected to show that the UK economy shrank in the third quarter - the first contraction since 1992.
Figures later this week are expected to show that the UK economy shrank in the third quarter - the first contraction since 1992.
Chancellor Alistair Darling had forecast in his Budget statement in March that public sector public borrowing for the full financial year - up to April 2009 - would reach £43bn.
Chancellor Alistair Darling had forecast in his Budget statement in March that public sector public borrowing for the full financial year - up to April 2009 - would reach £43bn.
But the Item Club believes borrowing will reach £60bn in the financial year 2008-09, with a current budget deficit of £27 billion, "much higher than the government's own projection".
But the Item Club believes borrowing will reach £60bn in the financial year 2008-09, with a current budget deficit of £27 billion, "much higher than the government's own projection".
In light of this, the club said it was clear "substantial revisions will be necessary in the Pre-Budget Report."
In light of this, the club said it was clear "substantial revisions will be necessary in the Pre-Budget Report."
Unemployment is already rising and forecast to continue doing so, which will will add further pressure on the government's finances.
Unemployment is already rising and forecast to continue doing so, which will will add further pressure on the government's finances.
And recent data has underlined the weakness in the housing sector; mortgage lending fell to its lowest level for more than three and a half years in September, according to the Council of Mortgage Lenders.
And recent data has underlined the weakness in the housing sector; mortgage lending fell to its lowest level for more than three and a half years in September, according to the Council of Mortgage Lenders.
Intervention
Intervention
The UK government recently took emergency steps to shore up the banking system in a bid to increase liquidity and stabilise the markets.
The UK government recently took emergency steps to shore up the banking system in a bid to increase liquidity and stabilise the markets.
Other nations have taken similar moves:
Other nations have taken similar moves:
• Sweden became the latest European government to announce a bank rescue plan. Its $205bn package included credit guarantees and a bail-out fund • Dutch banking and insurance company ING is to receive a 10bn euro ($13.4bn; £7.7bn) government cash injection
• Sweden became the latest European government to announce a bank rescue plan. Its $205bn package included credit guarantees and a bail-out fund • Dutch banking and insurance company ING is to receive a 10bn euro ($13.4bn; £7.7bn) government cash injection
• South Korea revealed its own financial sector rescue package, worth $130bn.
• South Korea revealed its own financial sector rescue package, worth $130bn.
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