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Public sector borrowing rises

Public sector net borrowing rose by £600 million to £15.4 billion in December, according to the Office for National Statistics.

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Labour: Government's policies have 'badly backfired'

David Cameron and George Osborne's economic plan is hurting, but it's not working. Their failure on jobs and growth means they are now failing on the one test they set themselves - to get the deficit and debt down.

Borrowing is rising and is over £7 billion higher than at the same point last year.

And this is borrowing to pay for economic failure as a flatlining economy and rising long-term unemployment have sent the welfare bill soaring and tax revenues have been revised down.

By squeezing families and businesses too hard, choking off the recovery and so pushing borrowing up not down, the government's economic policies have badly backfired.

– Rachel Reeves, Shadow Chief Secretary to the Treasury

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