UK budget deficit ‘worst on record’

Britain’s budget deficit widened to the biggest on record for any August, data showed yesterday, a day after the central bank governor said overshooting budget targets may now be acceptable.

The government said a weak economy pushed down corporation tax receipts and drove up benefit payments.

As a result, public sector net borrowing excluding financial sector interventions — the government’s preferred measure — rose last month to £14.410bn from £14.365bn in Aug 2011.