Wednesday, May 12, 2021

HomeUK NewsCOVID-19: Virus fight forces government borrowing to £303bn - highest level 'since...

COVID-19: Virus fight forces government borrowing to £303bn – highest level ‘since records began’

The demands of the coronavirus crisis on the public purse strings forced government borrowing to its highest annual sum on record, according to official figures.

The Office for National Statistics (ONS) reported net borrowing of £24.3bn in March – a month when the chancellor revealed a budget that pledged continued support for the public health effort and extended shields for the economy from continuing COVID-19 restrictions.

Figures showed that the latest sum took borrowing to £303.1bn in the 2020/21 financial year as a whole, representing 14.5% of GDP.

The ONS said it marked the highest annual total since 1947 – when comparable records began – though it came in well under the £355bn predicted just last month by the Office for Budget Responsibility (OBR).

The start of the financial year was dominated by the crisis as the UK had just entered its first pandemic lockdown, forcing many parts of the economy into a spring hibernation as the NHS grappled surging hospital admissions.

Chancellor Rishi Sunak was forced into 15 separate announcements during the period as a whole, with at least £280bn spent tackling the crisis.

The sum includes extra money for the health service, Test and Trace, vaccines and support schemes including the Job Retention Scheme, or furlough, along with loans and grants for businesses.

The ONS said the £303.1bn figure followed a deficit of £57bn in the previous financial year.

It meant that the country has net debt of £2.14trn – the highest proportion of GDP since the 1960s.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments

Share via
Copy link
Powered by Social Snap