Borrowing has overshot forecasts by £2.9bn, as Labour is plotting a nationalisation spree. 

The UK borrowed £14.5bn in June, well higher than the £11.6bn predicted by the Office for Budget Responsibility. 

Meanwhile, the debt burden remains at its highest level since the early 1960s at 99.5pc of gross domestic product, threatening to eclipse the total size of the economy. 

The figures underline the challenges facing new Chancellor Rachel Reeves, who has pledged to have national debt falling within five years. 

It comes as Labour has vowed to renationalise the rail network within five years. 

While there would not necessarily be any upfront costs in taking on rail franchise contracts when they run out, the British taxpayer would be on the hook for operators’ debts, leases and liabilities, including pension fund pots.

Rail bosses have warned that costs would likely rise in the long term without the commercial focus of private firms.