Government borrowing hit a higher-than-expected £14.5 billion last month, official figures revealed today.

The woes facing Britain's battered finances showed few signs of easing as the Office for National Statistics (ONS) confirmed the budget deficit widened by another £700 million in June to £12.6 billion.

Last month's public sector net borrowing was £200 million less than the £14.7 billion seen a year ago, but was more than the £13.5 billion expected by analysts.

Figures excluding the temporary effects of State financial intervention showed borrowing rose to £15.2 billion up from £14.9 billion in June 2009.