Economists in Britain said July's budget figures limited the government's choices for deficit reduction in 2013.
"This may mean taking some difficult choices in the months ahead," said David Kern, chief economist at the British Chambers of Commerce, referring to July, when the deficit grew by $946.7 million.
It was a surprise figure, given the expectations that the deficit would fall by $3.1 billion in July, The Daily Telegraph reported Tuesday.
Corporate taxes, however, fell by 20 percent and government spending rose 5 percent, mostly on increased benefit outlays.
Kern recommended "more deregulation, increased infrastructure spending and the creation of a state-backed business bank," to spur economic growth.
"July's public finance figures continue the deterioration seen over the past few months," said Vicky Redwood, an economist at Capital Economics.
"And with the recovery falling well short of the Office of Budget Responsibility's expectations, we think that the government will struggle to cut borrowing at all next year, either," she said.