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British official public deficit shoots higher

Britain's public sector net borrowing rose much more than expected in May on a sharp fall of income tax receipts amid the nation's recession.

Public sector net borrowing increased by £17.9 billion sterling in May compared with a rise of £15.2 billion in the same month a year ago, the Office for National Statistics said.

The data excludes the temporary effects of financial interventions such as bank bailouts.

Analysts had forecast a borrowing rise of £15.7 billion last month.

They said the main problem remains a sharp slowdown in tax receipts. The combination of worsening public finances and renewed recession is likely to intensify calls for the government to change tack on its austerity programme, they added.

May's surge surge in public borrowing was driven by a 7.3% annual drop in income tax receipts.