The UK has overhauled the way it raises debt and announced plans for a record amount of government bond issuance in the next financial year amid fears it may struggle to attract buyers of gilts because of the vast supply.

The UK Debt Management Office (DMO) on Wednesday said it would issue £147.9bn of gilts in the 2009/10 financial year beginning on April 5. This is marginally higher than this year’s £146.4bn and three times more than the 2007/08 financial year.