Government borrowing is expected to show another surge later after figures benefited from a seasonal boost in the previous month.

Economists predict August's public sector net borrowing will total 12-point-4 billion - compared to just 20 million in July when tax receipts boosted the result.

Meanwhile the Deputy Prime Minister's admitted the UK's road to economy recovery has "got longer".

Yesterday the International Monetary Fund downgraded its growth forecasts - raising fears of a double dip recession.