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		</div><p><a href="http://londonglossy.com/wp-content/uploads/2010/11/uk-slumps-another-10bn-into-red.jpg"><a href="http://londonglossy.com/wp-content/uploads/2010/11/City-8-12.jpg"><img class="alignnone size-full wp-image-1014" title="Public borrowing figures" src="http://londonglossy.com/wp-content/uploads/2010/11/City-8-12.jpg" alt="" width="200" height="200" /></a><br />
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<p>Britain slumped into the red by another £10.3 billion last month despite a leap in business tax and VAT revenues, figures have revealed.</p>
<p>Public sector net borrowing in October set a record high for the month and marked an increase on the £10.1 billion seen a year earlier, according to the Office for National Statistics (ONS).</p>
<p>The rise came in spite of signs that the recovery was boosting government tax take, with corporation tax revenues up 29% and VAT also higher as shoppers rushed to beat January&#8217;s VAT hike to 20%.</p>
<p>Some economists had expected borrowing to fall year-on-year, with October traditionally seen as a strong month for taxes.</p>
<p>The figure, which excludes the impact of financial intervention by the Government, has taken borrowing in the financial year to date to £81.6 billion.</p>
<p>But the ONS revealed hefty downward revisions to borrowing in August and September, down to £14.1 billion and £15 billion respectively, which gives hope that the Government remains on track to come within the £149 billion forecast by the Office for Budget Responsibility for 2010-11.</p>
<p>The further borrowing in October saw Britain&#8217;s budget deficit widen by another £7.1 billion last month. Net debt is now £845.8 billion, which represents 57.1% of gross domestic product (GDP) &#8211; also a record for October.</p>
<p>The figures are likely to reinforce the Government&#8217;s argument for slashing public sector spending, with the full scale of cuts announced last month.</p>
<p>While tax revenues are increasing and falling unemployment is helping reduce spending on jobless benefits, economists said the Government is battling against ever-increasing interest payments on its mammoth debt levels.</p>
<p>The figure for last month, which includes financial intervention &#8211; which reduces overall borrowing due to profit contributions from the part-nationalised banks &#8211; was £9.8 billion in October, up on the £9.4 billion seen a year ago.</p>
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