The Office for National Statistics (ONS) believes January tax inflows will drop these figures but they predict it will rise again in February.

Chancellor George Osborne passed targets to bring borrowing down in December by the Office for Budget Responsibility (OBR). Borrowing was planned to decrease to £10bn but instead it was brought down to £127bn this financial year.

ONS have reported public sector borrowing dropped from £13.7bn in December down to £15.9bn in the same period in 2010.

Nikki Hart of Finance News.co.uk said: "People in the UK are borrowing more than they can afford. The current economic climate makes it easy for some to borrow money with the intention to pay it back. However, with the rise in living costs and bills, paying back the debt becomes more and more difficult."

Sterling dropped slightly against the euro to €1.1918 following the news and the pound also fell a quarter of a per cent against the dollar, to $1.5534.

The Chancellor revised the UK's borrowing forecasts in last year's Autumn Statement due to stalling growth. Predictions state borrowing could be £5bn more than the original forecast this financial year. Further predictions are £19bn higher borrowing next year and £30bn in 2013-14.

Nikki said: "It is so important to save for your future; should you meet a difficult situation. If you have savings which you can rely on, you won't have to borrow money which you can't afford."

Economists believe GBD figures to show the UK economy contracted during the final quarter of 2011.

The international Labour Organisation fears Britain may fall back into recession due to a weak job market. However the Ernst & Young ITEM Club and the Centre for Economics and Business Research believe that the UK is already in recession.

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