Britain's finances slipped further into deficit last month, making it almost certain the Chancellor of the Exchequer, Mr Gordon Brown, will miss his borrowing target for the fiscal year.
The Office for National Statistics reported this morning that a public sector net cash requirement for last month of £8.6 billion sterling, the highest September number ever and well above analysts' forecasts of a £6.5 billion shortfall. It was also over £3 billion worse than September last year.
That brought the government's cash overdraft for the first half of the fiscal year to next March of £22.2 billion , the biggest number since 1993/94 when the previous Conservative government established a record deficit for the full year.
Financial markets showed little reaction to the data, however, as they are already expecting a glut of supply of government bonds, or gilts, the government will issue to cover the hole in its accounts.
"It is a very disappointing set of numbers. With the focus on public borrowing the Chancellor is going to have a lot to do to come anywhere near his forecast this year," Mr David Page, an economist at Investec said.
On the government's preferred accruals-based measure, which gives a picture of the underlying state of the public purse, public sector net borrowing came in at £2.8 billion last month, slightly less than markets had expected.