Government borrowing exceeded expectations last fiscal year, official figures show.
According to the Office for National Statistics, borrowing, the difference between spending and tax revenue, reached £120.7bn in the year to March.
Although down on the previous year, it was still £6.6 billion more than government forecasters had predicted.
Analysts said the numbers were higher than expected and could limit further tax cuts before the election.
Ruth Gregory, deputy chief UK economist at Capital Economics, said: “If the Chancellor was hoping that the March numbers would give him more room to cut taxes in the fiscal events later this year, he will have been disappointed.” .
Jessica Barnaby, ONS deputy director general for public sector finance, said government spending had increased by around £58bn over the past year, adding: “This exceeded the average reduction.”
“However, public sector receipts have increased by £66 billion and overall the deficit is still falling,” she said.
Borrowing in March alone was £11.9bn, down £4.7bn on the same month last year but still higher than analysts expected.
The total debt the government has accumulated over the years was £2.7tn at the end of March.
This is equivalent to 98.3% of the size of the UK economy, measured in gross domestic product (GDP), and is at the level last seen in the early 1960s, the ONS said.
