£15.9bn borrowing beats August record

The bigger-than-expected figure left borrowing in the first five months of the financial year at 58.1bn, the Office for National Statistics (ONS) said.

The release of yesterday's figure, which was higher than the 14.1bn a year ago, comes a month before Chancellor George Osborne sets out his austerity plans in the comprehensive spending review on October 20.

The independent Office for Budget Responsibility is expecting borrowing of 149bn for the financial year as a whole – down from 155bn in 2009-10.

Samuel Tombs, an analyst at Capital Economics, said August's public borrowing figure – the highest since records began in 1993 – dented hopes that the fiscal position is on a clearly improving trend.

He said: "August's overshoot clearly casts some doubt on the ability of the Government to meet the June Budget projection of annual borrowing of 149bn on that measure."

August is usually a demanding month as corporation tax receipts do not tend to feature strongly, the ONS said.

Yesterday's figures did show some signs of recovery, however, with tax receipts of 37.1bn – up 2.2bn on a year earlier. The tax take was up 6.3 per cent on a year earlier.

There was also a downward revision to net borrowing for April to July this year by 2.7bn.