The British government's cash shortfall hit the highest June number ever last month as interest payments and surging departmental spending took their toll.
The Office for National Statistics today reported a public sector net cash requirement - the difference between government spending and receipts - of £10.1 billion sterling - over £1 billion worse than expected by economists.
June is always a bad month for the government's cash position because interest on government bonds are payable twice a year - in June and September.
But the data also showed the underlying position is worsening sharply because government spending is up over 13 per cent so far this fiscal year, while receipts - hit by stagnant equity markets - are only up 3 per cent.
Financial markets showed little reaction to the data, however, with gilt futures steady although interest rate futures fell slightly on buoyant bank lending data released at the same time that dimmed hopes of further interest rate cuts from the Bank of England.