UK misses borrowing target by £1.8bn

Gerge Osborne misses forecast as cash-strapped councils dip into reserves and raise debt to fund spending shortfall

Britain borrowed more than expected in the last financial year as local councils sought to fill the gap created by deep budget cuts by dipping into reserves and increasing their debts.

Local authorities borrowed 6bn, more than 4bn higher than the previous 12 months, offsetting bumper tax receipts and a clampdown on central government spending.

Related: Borrowing likely to be higher than last financial year, ONS figures show