Public borrowing 'will hit record'
Official figures out today are expected to show public borrowing soared above £90 billion for the financial year - far exceeding the Chancellor's own predictions.
Before Alistair Darling takes to his feet in the House of Commons to set out his plans for the next 12 months, economists believe data for the last financial year will reveal public sector net borrowing reached a record £92 billion.
The grim picture of the public finances is also expected to show that borrowing reached £16 billion in March.
The surge in borrowing would dwarf Mr Darling's forecasts of £78 billion in borrowing in the full year in November's pre-Budget statement.
At the time Mr Darling also predicted that borrowing would rise to £118 billion, or 8% of GDP, in 2009/10, but a recent forecast from the Ernst & Young ITEM Club said this could balloon to £180 billion.
IHS Global Insight economist Howard Archer said of the 2008/9 borrowing: "It is going to be a pretty horrible figure but it will probably pale into the deficit the Chancellor will forecast later on."
He said March's figure could be as much as £18 billion, compared to £11.5 billion in the same month last year, bringing the year's total borrowing to £95 billion.
Falling tax revenues and surging public spending were forecast to have further hit the public purse.
"The tax receipts are taking a hammering left, right and centre," he said.
Mr Archer added: "The weakness of the economy and the weakness of the housing market are absolutely slamming tax receipts."
