The extent of Britain’s financial woes was laid bare today as official figures confirmed annual public borrowing hit £152.8 billion – the highest since records began.

The grim record for public sector net borrowing came after the UK slumped into the red by another £23.5 billion in March, according to the Office for National Statistics. But there was some good news for the economy with officials revealing car production soared by 90.2 per cent last month compared with March 2009.

The rise was a record for any month and showed just how deep in the doldrums the industry was this time last year. However, retail sales grew by far less than expected in March amid signs of consumer caution.

Sales volumes rose by just 0.4 per cent during the month – far below the 0.8 per cent expected by the City, although the value of goods sold rose 0.9 per cent.

Borrowing for the financial year to the end of March came within the Chancellor’s lowered Budget forecast. Excluding financial intervention, annual borrowing reached £163.4 billion – comfortably below Alistair Darling’s latest prediction for £167 billion and far lower than his original £178 billion estimate.

Britain’s public sector net debt is now a record 62 per cent of GDP. The budget deficit widened by £14.8 billion in March to £107.6 billion over the financial year.