The most revered currency across the world could be on the verge of collapse if the current trend of public borrowing and debt continues at the same pace, politicians have warned today.

Conservative lawmaker George Osborne has voiced his fears that the stirling could suffer a dip following the recent collapse of the financial market.

Only this week the pound fell to its lowest mark against the dollar for almost seven years and record low against the euro.

"We are in danger, if the government is not careful, of having a proper sterling collapse, a run on the pound," he was quoted as saying in the Times of London newspaper Saturday. "The more you borrow as a government the more you have to sell that debt and the less attractive your currency seems."

"The public is very concerned about how much money is being racked up on the country's credit card," they know you can't just borrow your way out of debt," he added.