BORROWING SOARS TO RECORD £13BN

Alistair Darling was lent £13billion in June to pay for public services – the highest amount ever. His borrowing for the financial year so far is £41.2billion.

And he predicts borrowing will hit £175billion this year. It is made worse by falling tax revenues – with corporation tax takings plunging by 14.1 per cent, VAT by 15.9 per cent and income tax by 3.9 per cent.

Paying unemployment benefits is also up 9.7 per cent, costing £13.3billion. The Chancellor last month spent £49billion – up from £44.2billion in 2008.

The Office for National Statistics said net debt ballooned to £798.8billion – the highest proportion of gross domestic product since records began in 1974. But with no sign of Gordon Brown having proper plans for cuts taxpayers may face rises.

Richard McGuire, of RBC Capital Markets, said it is “a time bomb” waiting to go off. A spokesman for Gordon Brown said: “Our economy, like all economies, has been affected by the global recession.”