The UK’s public finances showed another sharp deterioration today after it was announced that net borrowing soared to a record £16 billion in November.

The figure, which was much greater than the £13.7 billion economists had been forecasting, left public sector borrowing at £56.1 billion for the first eight months of the financial year, compared with £29.2 billion at the same stage last year.

The Chancellor Alistair Darling has already given warning that net borrowing could hit £118 billion next year as the UK faces up to recession.

Public sector net borrowing of £16 million was £5.3 billion higher than the £10.7 billion recorded in Novembr last year.

The current budget deficit of £13 billion compares to the deficit of £8.1 billion this time last year.

The official figures show that at the end last month public sector net debt was £650 billion, equivalent to 44.2 per cent of GDP. A year ago net debt was £617.1 billion.

The figures exclude the impact of the Treasury's acquisition on December 1 of a 57.9 per cent stake in Royal Bank of Scotland, at a cost of almost £15 bilion, and £5 billion of new preference shares in RBS.

The impact of its intervention in RBS will be felt in the December public sector figures.

Explore Economics

• Pre-Budget Report 2008

• Budget 2009

• World Economic Forum

• The Times MPC

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive