The government said on Thursday that Britain's deficit reached a record $250.8 billion in March, a figure that came in slightly less than a budget forecast.

The Times of London has reported that borrowing for the month reached $36.1 billion, a huge jump from the same month of 2009, when the government borrowed $5.2 billion.

The newspaper further said that the government hasn't borrowed as much in any March since the end of World War II.

Capital Economics chief economist Jonathan Loynes said that beating expectations "may heighten the debate between parties (Conservative and Labor) over Labor's planned $9.2 billion hike in national insurance in 2011."

In last month's budget, the deficit was expected to reach $256.9 billion, which makes $6.1 billion available if other figures like tax estimates, come in on target.

He also said, "The Conservatives may argue that, the undershoot supports, their argument that the hike can be avoided."

The newspaper further added that the Labor Party's budget includes a 1 percent hike in the National Insurance levy for 2011. (With Inputs from Agencies)