According to the Office for National Statistics (ONS), in August the public sector net debt total amounted to a massive £1.505 trillion – an increase of over £68 billion in the past year.
The debt pile has increased by 4.8% since last year, and now equates to 80.6% of the Gross Domestic Product (GDP).
This comes as the Government spent more than it received in taxes and other income in August.
Last month, public sector net borrowing increased to £12.1 billion. Yet at the same time, income fell by 1%.
Critics said that this may cast doubt over the Chancellor’s ability to hit the public finance target for the 2015/16 financial year.
IHS Global Insight’s chief UK economist, Howard Archer, said: “As things currently stand, the fiscal targets for 2015/16 look much harder for George Osborne to achieve than they did only a month ago.
“Furthermore, with the economy currently showing signs of going through a softer patch there is the risk that tax receipts could disappoint further.
“The Chancellor will obviously be hoping that the economy can kick on and is not hampered by global growth being held back by a marked slowdown in China and emerging markets.”
To tackle the public debt, the Treasury said that the Government would look to make savings in other areas.