UK public borrowing rises to record for June

British public sector borrowing rose more than expected last month to a series high for the month of June, official figures showed on Friday, in a sign that a slowing economy is taking its toll on the public purse.
The Office for National Statistics said the public sector posted a net cash requirement of 15.459 bln pounds last month, the largest since the series began in 1984. Analysts had expected a reading of 12.6 bln.
The government's preferred accruals-based measure came in at 9.164 bln pounds, above market forecasts of 7.4 bln.
Public sector debt at the end of June stood at 38.3% of GDP, the highest since July 1999 when it was 38.4%.
The figures are likely to raise expectations that the government could break one of its key fiscal rules — to keep borrowing below 40% of GDP.
British media speculated on Friday that finance minister Alistair Darling will reform the fiscal rules later this year, possibly allowing for borrowing to be greater than the current rule.
The ONS said slowing growth in receipts and sustained growth in expenditure had led to the deterioration in the public finances.
Public borrowing for the first three months of the fiscal year 2008/9 rose to 24.4 bln pounds, the highest since records began in 1946.
The current account deficit for the first quarter expanded to 20.4 bln pounds — the largest since 1946.