BRITAIN’S PUBLIC sector net borrowing rose to its highest on record for the month of February, but by less than economists had forecast, the Office for National Statistics (ONS) said.

The office said public sector net borrowing in February was £12.361 billion (€13.85 billion), below economists’ forecast of £14.75 billion, but well above the £8.766 billion in February 2009.

The cumulative figure for the tax year to date rose to £131.867 billion, suggesting that the government may undershoot its forecast borrowing for the year to April 2010, which was £170.4 billion, including financial interventions.

January’s public sector net borrowing figure was revised sharply downwards to just £43 million from £4.339 billion. The ONS said revisions to back data for the year had reduced overall borrowing for 2009/10 by £2.9 billion.

The cash measure of borrowing came in at £7.703 billion, again below forecasts for a reading of £11 billion, but well above the £4.681 billion in February 2009.

The government, which will deliver its annual budget on March 24th, has pledged to halve its budget deficit over the next four years. –(Reuters)