Britain's public finances were in worse shape than expected in March due to a sharp fall in corporation tax receipts, official data showed today.
The Office for National Statistics (ONS) said the public sector posted a net cash requirement of just over £17 billion last month, more than a billion pounds above the consensus forecast and its biggest monthly shortfall on record.
The government's preferred accruals-based measure came in at £8.483 billion, also higher than the £7 billion forecast and the worst March reading since 1994.
The government met its full-year borrowing target, however, after public sector net borrowing came in just below the £35 billion pencilled in by finance minister Gordon Brown in last month's Budget.
The ONS blamed the deterioration in March on a sharp fall in corporation tax receipts, which were down 32 per cent on a year earlier. This was due to repayments of both corporation tax and petroleum revenue tax.