I Updated page on National Debt. following yesterday's grim figures (though some feared they could have been worse)

• Including the financial sector intervention, public sector debt rose to just under £800bn or 54 % of GDP.
• Excluding financial sector innovation, public sector debt is £657.5 billion or (46.6% per cent of GDP)

National Debt may still lower than many other countries, but markets are alarmed at the pace of the deterioration in public finances. Significant portions of tax revenue have just evaporated and show little signs of returning.

Needless to say, this rapid deterioration in public finances leaves any government little room for maneouvre. It will be a difficult balancing act to reduce borrowing without snuffing out any nascent recovery. However, at the moment there is no hope of reducing borrowing, figures suggest a remorseless rise in government borrowing over the next 2 years.

The ratings agency Standard & Poor's has put Britain's prized AAA rating on credit watch with a negative outlook. This is often a precursor to reducing a credit rating. A lower credit rating would make it more difficult and expensive for UK to borrow in future.