LABOUR has seized on higher borrowing figures, saying they are a clear sign the UK Government's economic policy had backfired and was "choking off the recovery".

In November, the Coalition had to borrow more than expected, some £17.5 billion, £1.2bn higher than a year earlier. Economists had forecast borrowing would fall to around £16bn. Last month's figure takes total borrowing so far this financial year to £92.7bn, £8.3bn more than the same period in 2011. The Office for National Statistics also revised down its estimate for growth between July and September to 0.9% from 1%.

Rachel Reeves, Shadow Chief Secretary to the Treasury, said: "For all the Chancellor's smoke and mirrors in the autumn statement, these figures show that borrowing is rising."

However, Danny Alexander, Chief Secretary to the Treasury, insisted the figures showed how Britain continued to be on a hard road back to economic prosperity.