The UK public deficit widened to a six-year record in December, coming under pressure from the slowing economy.

Government expenditure exceeded income by �9.4bn in December, the biggest monthly overdraft since March 1996, according to official statistics.

The wider deficit reflects a decline in tax revenue due to the economic slowdown, as well as higher government spending on public services.

Annual interest charges on the government's debt, settled in December, also boosted the final figure.

Financial health check

Rising levels of government debt make tax increases more likely, and can fuel inflation by reducing the value of the pound against other currencies.

However, economists said that with tax receipts expected to pick up again this year due to stronger growth, the government's finances remained sound overall.

"Spending continues to grow pretty much in line with government projections," said Robert Jukes, economist at CSFB.

"We think receipts could hold up pretty well and expect a surplus at the end of this financial year."

Other analysts forecast a moderate deficit for the year as a whole, but argue that the economic stimulus provided by higher public spending makes it easier for the government to take on extra debt.

Spending boost

Total government spending rose to �244bn between April and December last year, almost 9% up on the total for the same period in 2000.

Cash receipts declined by 6% on the year in the same period to �251bn.

The rise in spending reflects a political commitment by the Labour government to spend more money on the UK's increasingly run-down public services.

The UK's total government debt currently stands at �318.3bn, equivalent to 31.6% of the country's annual economic output.