Public sector borrowing 'not too bad'

Government borrowing last month was the highest for any August on record, according to the latest figures from the Office for National Statistics.

The total of 14.4 billion pounds was because of lower tax receipts and higher benefits payments. The figure also increases the likelihood that the government won't achieve its aim of wiping out the budget deficit by 2015.

James Knightley from ING Financial Markets told BBC News that given the backdrop of a contracting economy, the figures weren't too bad.