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The public finances suffered yet another lurch into the red last month amid warnings of a record deficit this year that would force the next government to raise taxes or cut spending – or possibly both.
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The national debt figures lurched higher as the government’s nationalisation of Northern Rock’s £87bn debt came onto the books for the first time, pushing debt up to 43.3% of national income, well above the government’s self-imposed 40% ceiling.
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