The UK government have revealed that they borrowed £12.4bn in February, less than economists had predicted.

These figures mean that the UK's total borrowing for the financial year is now more than £130bn. The government's borrowing forecast for the year to the end of March is £178bn.

Chancellor Alistair Darling has pledged to halve the budget deficit in percentage terms over the next four years, but has warned that making cuts now could harm the UK's tentative recovery from recession.

"February's public finances figures have provided Alistair Darling with a very timely boost ahead of next Wednesday's Budget," said Jonathan Loynes of Capital Economics.