British public sector borrowing hit a record high for the month of October, official data showed today, despite concerted government efforts to slash the deficit.
However revisions to previous months' figures leave the government on course to meet its fiscal target for the current 2010-2011 financial year.
The British government's public sector net borrowing requirement jumped to £10.3 billion sterling last month, the Office for National Statistics (ONS) said. That compared with borrowing of £10.1 billion in October 2009. Analysts had forecast a rise to £9.4 billion.
They said that while public sector borrowing was larger than expected in October, the downward revisions to borrowing earlier in the year mean that the government still appears to be on track to meet its full-year borrowing forecast.
Last month, British finance minister George Osborne unveiled plans to slash public spending in a bid to reduce a record deficit totalling around £155 billion. It comes as Britain faces an uncertain economic recovery after recession.
Although the economy officially grew by a robust 0.8% in the third quarter, soothing fears of a double-dip recession, economists expect weaker growth ahead amid the spending cuts and tax hikes.
UK retail sales recover in October
British retail sales volumes rose slightly faster than expected in October after two months of declines, with strength across most sectors, official data showed today.
The Office for National Statistics said sales volumes rose 0.5% last month after a downwardly revised fall of 0.5% in September. Analysts had forecast a rise of 0.4% on the month.
That gave an annual reading of -0.1%, the first fall since January but in line with expectations.
Excluding fuel, retail sales rose 0.3% on the month and were up 1.2% on the year.
