Government borrowing rose by £14bn last month to take public sector borrowing for the six months of the financial year to £77.3bn - the highest half-yearly figure since the Office for National Statistics records began in 1946.

Overall public sector debt now stands at £824bn, just under 60% of the county's GDP. The government has predicted that borrowingwill reach £175bn this year. 

There are concerns that the rising levels of debt will cause long-term damage to the UK economy even after the recession has passed and that the rising debt could affect the country's credit rating.

"Unless the government demonstrates that it can tackle the deficit without damaging wealth-creating businesses, the recovery will be threatened, the deficit will worsen further and the country would face serious risks of further declines," said David Kern, chief economist at the British Chambers of Commerce.