LONDON, Sept 21 Reuters Britain increased its public borrowing in the first five months of the tax year, according to data published on Thursday, and finance minister Jeremy Hunt looks likely to have little room to offer major tax cuts to voters later this year.

Public sector net borrowing, excluding stateowned banks, totalled 69.6 billion pounds 85.7 billion in the AprilAugust period, 19.3 billion pounds more than a year earlier.

The figure for the financial year so far was 11.4 billion pounds less than expected by official fiscal forecasters whose projections underpin the government39;s budget plans.

But analysts said a slowdown in the economy would hurt tax revenues and the Office for Budget Responsibility was likely to revise up its estimates for debt interest spending when Hunt makes his next budget statement in November.

Households usually enjoy tax cuts in the runins to general elections, but we expect Mr. Hunt to make only token gestures in the Autumn Statement, Samuel Tombs, an economist with Pantheon Macroeconomics, said.

Thursday39;s data showed Britain recorded a slightly largerthanexpected budget deficit in August alone.

The public sector spent more than it received in taxes and other income during the month, requiring it to borrow 11.6 billion pounds, the Office for National Statistics said.

A Reuters poll of economists had pointed to public sector net borrowing, excluding stateowned banks, of 11.3 billion pounds.

These numbers show why after…