Public sector finances suffered from a 20 per cent fall in corporation tax receipts from business while public spending rose by 5 per cent, fuelled by higher benefit payments.
Overall public sector net borrowing came in at £600 million in July, compared with a surplus of £2.8 billion in the same month last year. City's expectations had been for a surplus of £2.5 billion.
Public sector net debt now stands at above £1 trillion, compared to £940 billion a year ago, and represents 65.7 per cent of the UK's GDP, up from 61.8 per cent last year.
Well it has achieved the goal of low government borrowing rates, but that's because the economy sucks.