The government was forced to borrow £13bn in June, almost double the amount in the same month last year, as shrinking tax receipts continued to put pressure on public sector finances.
The increase in borrowing sent net debt soaring to £799bn, which is about 56% of GDP - the highest level since records began in 1974. Last June, net debt stood at £641.4bn, 44.4% of the UK's gross domestic product. Official figures from the Office for National Statistics (ONS) showed that the Government's intervention in the financial sector accounted for £141.3bn of net debt. The effective nationalisation of Northern Rock and Bradford & Bingley together accounted for £118bn, while compensation payments to depositors by the Financial Services Compensation Scheme (FSCS) and the Trea...
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