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In October, the Treasury Board wrote pencil for the year to ?149bn, public sector borrowing requirement at the bottom of ?154. 7bn year last picture: Alamy

But as Stephen Lewis to Monument Securities said on Tuesday, there is no place for schadenfreude here.

Elements of evidence which came with the publication of public finances in November, which show an alarming deterioration in the State of government spending.

Expenditure was much higher than expected and the Treasury Board gave only the frivolous explanation why. In October, the Treasury Board wrote to pen a requirement for borrowing by the public sector for the year to ￡ 149bn, down from ￡ 154. 7bn last year.

But analysts believe now, based on these latest figures November that progress could be wiped out.

It is not evidence of a Government which gained control of the situation, despite the rhetoric. At this rate of spending some departments may be executed funds before the end of the fiscal - little sign of Ministers in the control.

Figures a month, however, are not a trend, and since the ruling coalition there were other bad economic news in areas such as unemployment. These things can go from top to bottom.

But figures Tuesday, are a setback. They undermine the history of the coalition on the reduction of the deficit and the market responded accordingly, with books and gilts slip. Consumer confidence continues to be low, suggesting Street high expenses will be under severe pressure in 2011, especially with the VAT in January.

The concern is that as the economic picture worse, will represent a threat to the Government's income tax, the politicians are trying to simultaneously control spending despite their promises. It take several months as November code in an episode renewed nervousness about the United Kingdom finance markets.

The credit market and its sovereign debt rating UK based, already or less large extent on the credibility of the coalition. And this credibility has taken a knock these latest figures. Literally, the country cannot afford it shall reproduce several times.

Damian.Reece@Telegraph.co.UK

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