The UK is importing more and more cars

The Office for National Statistics said the UK imported �4.8bn worth of goods more than it exported in September, much more than the �3.5bn forecast.

It was the UK's biggest monthly trade deficit since the all time high of �5.1bn recorded last November.

The deficit growth was largely caused by reduced output of North Sea oil.

Oil shortfall

Cuts in oil production caused by maintenance work contributed �500m to the �1.4bn increase in the overall deficit in September.

It was the first time since August 1991 that the UK imported more oil than it exported.

Increased imports of cars, particularly from European Union countries, swelled the deficit by a further �200 - �300m.

This record trade deficit...shows graphically that industry is having serious difficulty competing with overseas rivals Vincent Cable MP, Liberal Democrat economics spokesman

Excluding oil and variable trade flows such as car imports and aircraft exports, the goods trade deficit widened to �4.4bn in September from, �3.8bn the previous month.

The deficit with other EU nations increased from �1.8bn to �2.2bn - its highest ever - while the non-EU deficit climbed from �1.7bn to �2.6bn, its highest in a year.

Record breaker

The total trade balance, which includes the traditional surplus generated by services such as banking and insurance, hit a record deficit of �3.9bn.

The Office for National Statistics added that the total trade deficit was trending higher, while the goods trade trend was flat, with both exports and imports on the increase.

Vincent Cable MP, Liberal Democrat economics spokesman, said the increased deficit dashed hopes that UK exports were recovering.

"This record trade deficit, the collapse in investment and loss of 500,000 jobs in manufacturing since 1997, show graphically that industry is having serious difficulty competing with overseas rivals," he said.