UK budget deficit at record levels

April 22, 2010 03:52 pm | Updated November 17, 2021 07:13 am IST - LONDON

Britain's Prime Minister Gordon Brown. File photo: AP.

Britain's Prime Minister Gordon Brown. File photo: AP.

Britain has posted its largest annual budget deficit since World War II - although 2009-10 borrowing was slightly better than forecast by the government.

The Office for National Statistics said on Thursday that public sector net borrowing rose to a record 152.84 billion pounds ($235.9 billion), or 10.9 percent of gross domestic product. That was up from 86.91 billion pounds in 2008/09.

The blowout in Britain’s deficit has been a key point of contention in campaigning for the May 6 national election.

The ruling Labour Party - which forecast borrowing of 167 billion pounds - has argued that spending was necessary to escape a deeper recession. The main opposition Conservative Party says that the deficit must be reduced urgently for a recovery to be successful.

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