The UK public sector borrowed a net GBP19.9 billion in May as the recession continued to hamper tax revenue. This figure set the highest level for any month since records began in 1993. Government borrowing is needed desperately as public finances rapidly deteriorate due to the current recession.

The 12-month rolling sum of public sector borrowing rate is well on its way to reaching GBP175 billion. This is caused in part by the government's current receipts falling over 10%, revenue declining, value-added tax receipts down, and the decrease of taxes on income and wealth.

The new debt the UK public sector has taken on has pushed sterling exchange rates to USD0.615 and EUR0.857

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The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.