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The Chancellor debt-busting plans were dealt a blow when figures showed underlying Government borrowing rose around £500 million in June.
Public sector net borrowing, excluding distortions such as bank bailouts and quantitative easing (QE) - the pumping of new money into the economy by the central bank - increased in June to £12.4 billion from £11.9 billion a year earlier, the Office for National Statistics (ONS) said.
However, including a £3.9 billion transfer of QE cash from the Bank of England's asset-buying drive, June's deficit fell by £3.4 billion year-on-year to £8.5 billion.
Public sector net borrowing excluding financial interventions fell by £3.4 billion to £8.5 billion in June, the Office for National Statistics said.