The debt owed by the UK government has risen to a record figure of £799bn - 56% of the UK's GDP - according to the Office for National Statistics.

New borrowing in June by the government amounted to £13bn, almost twice the amount that was borrowed in the same period last year.

Although public borrowing is in line with chancellor Alistair Darling's forecast, business groups have warned that the government must take action to reign in the spiralling debt.

"It would be wrong to tighten policy while the recession continues, but maintaining Britain's international credibility requires a robust plan for restoring our public finances over the medium-term," said David Kern, chief economist at the British Chambers of Commerce.