The figures come two weeks before the general election. The Tories had pledged to eliminate the deficit by 2019-20, but Philip Hammond has pushed back the target to 2025

Rising inflation is putting the public finances under pressure as shoppers rein in their spending, which hits VAT receipts, and index-linked government debt grows more expensive, official figures have shown.

Borrowing rose in April to £10.4 billion, £1.2 billion more than in April 2016 and £1.6 billion more than economists forecast, as growth in government spending outpaced growth in receipts.

The disappointment was VAT, which raised £11.1 billion, only 0.2 per cent more than last year. Scott Bowman, UK economist at Capital Economics, said: “Subdued revenue growth partly reflected weak VAT receipts growth — another sign that consumer spending growth has slowed recently.”

Inflation has jumped from 0.3 per cent in April last year to 2.7 per cent this year, leaving families out of pocket.