Britain’s deficit spirals

THE UK’s budget deficit has increased by billions of pounds in a blow to the next prime minister’s spending plans.

Public sector borrowing hit £ 17.9billion in the three months to the end of June – £4.5billion more than last year, according to official figures released yesterday.

Borrowing in June alone surged to £7.2billion – the highest for the month in four years. Britain is now on course to borrow more in this financial year than the £29.3billion predicted by the Office for Budget Responsibility.

The figures follow a flurry of spending pledges from Tory leadership candidates Boris Johnson and Jeremy Hunt. The budget watchdog warned on Thursday that the ‘uncosted’ plans put forward by the rivals would add tens of billions of pounds to borrowing costs if implemented.