UK Govt Borrowing Soars Further On Virus Support
Umer Jamshaid 1 month ago Fri 22nd January 2021 | 01:28 PM
UK government borrowing soared further in December on emergency action to support the British economy battered by the coronavirus pandemic, official data showed Friday
London, (APP - UrduPoint / Pakistan Point News - 22nd Jan, 2021 ) :UK government borrowing soared further in December on emergency action to support the British economy battered by the coronavirus pandemic, official data showed Friday.
The ONS noted that state borrowing by Prime Minister Boris Johnson's government had reached �271 billion in the nine months through to the end of December -- an increase of �213 billion compared with the same year-earlier period.
The latest figures mean that total public debt officially stands at 99.4 percent of gross domestic product, the highest level in decades.
"Since the start of the pandemic we've invested over �280 billion to protect jobs and livelihoods across the UK, and support our economy and public services," finance minister Rishi Sunak said in response to Friday's data.
"This has clearly been the fiscally responsible thing to do. But, as I've said before, once our economy begins to recover, we should look to return the public finances to a more sustainable footing." Reports suggest Sunak wants to begin removing support to coincide with his budget in March, despite the UK finding itself once more in lockdown, with bricks-and-mortar retail shut and children learning from home.
With the virus shutting businesses both permanently and until the latest lockdown is lifted, the government has also seen tax receipts slump by almost �40 billion in the nine months to December period.
This has contributed to public sector net debt reaching �2.13 trillion.