The level of debt owed by the government currently stands at £798.9 billion, making it the highest on record.

Public deficit has also increased, now standing at 18.98 billion as of last month, increased by £4.1 billion when compared to the same period of last year.

"The figures are modestly better than expected. It doesn’t take away from the fact that the state of public finances is dire and that a considerable degree of fiscal tightening will be required," said Philip Shaw, chief economist at Investec.

This follows recent news that personal debt is also on the rise, as statistics from Credit Action showed that it totalled £1,459 billion at the end of May.

Secured lending on dwellings stood at £1,226 billion, while total consumer credit lending equated to £233 billion.

Credit Action revealed that the average household debt in the UK stands at £58,360 when taking mortgages into account, with £181 million in interest paid in the UK every day.