Government borrowing in November was up £1.3bn on a year ago, figures published on Tuesday have revealed.
The Office for National Statistics said borrowing for the month totalled £14.2bn, while the overall figure for the financial year to date is now £66.9bn – down £6.6bn from November 2014.
It comes after public sector net borrowing rose by £1.1bn in October compared to the same time last year – the highest level seen in the month for six years. The news is a setback for George Osborne, after the Office of Budget Responsibility estimated that borrowing for the financial year 2015-16 would be £68.9bn.
What does 2016 have in store for the civil service?
The latest figures indicate the chancellor is almost certain not to reach the target this year.
"There was no festive cheer for the chancellor in November's UK public finances figures," said Paul Hollingsworth, UK economist at Capital Economics. "Indeed, it now looks almost impossible for Mr Osborne to meet the OBR's forecast for the fiscal year as a whole.
"If we assume that the trend seen so far this year continues, then borrowing for 2015-16 as a whole would come in at around £81bn."
A Treasury spokesperson sought to justify the rise, saying: “Today’s figures show that borrowing is higher than a year ago due to a number of one-off factors – a £1bn fine collected by the FCA in November 2014 and a change in the timing of a DfiD payment to the World Bank – that are likely to unwind next month.
"Beyond these factors, we can see that our plan is working, with government receipts growing – stronger income tax, VAT and on-shore corporation tax – showing the benefits of a growing economy with record employment levels.
“But there is more to do. That is why the chancellor used the Spending Review and Autumn Statement last month to set out how we will finish the job of ensuring spending is controlled, and public finances are returned to a surplus by 2019/20.”
Public sector net debt, excluding public sector banks, now stands at £1,536.4bn, equivalent to 80.5% of GDP, the ONS said. Last year government borrowing totalled £90.1bn.