Britain’s public borrowing increased again in August, reaching a new record high, driven by massive spending to combat the Coronavirus pandemic, with the budget deficit since the start of the current tax year surpassing its full-year peak during the global financial crisis.<\/p>\n\n\n\n
The government has now borrowed 173.7 billion pounds ($ 221.8 billion) in the first five months of the fiscal year that begins in April, topping the record of 157.7 billion pounds in the 12 months ending in March 2010.<\/p>\n\n\n\n
And those providing government budget forecasts warn that the deficit may reach 372 billion by the end of the tax year, which raises borrowing as a percentage of GDP to 18.9%, a level not recorded since World War II and far exceeding debt sustainability rates in the long run.<\/p>\n\n\n\n
Finance Minister Rishi Sunak said on Thursday it was time to focus on restoring growth, not curtailing borrowing, but added that tough decisions would be needed in the longer term.<\/p>\n\n\n\n
Despite this, Sunak has cut subsidies for those whose work remains vulnerable by the pandemic.<\/p>\n\n\n\n
Borrowing in August alone jumped to 35.9 billion pounds, below analysts’ average forecast of $ 38 billion, while the July figure was revised down by 11 billion to 15.4 billion pounds.<\/p>\n\n\n\n
Net public sector debt was 2.024 trillion pounds, or 101.9% of GDP, the highest as a percentage of the economy since the 1960-1960 fiscal year.<\/p>\n","protected":false},"excerpt":{"rendered":"
Britain’s public borrowing increased again in August, reaching a new record high, driven by massive spending to combat the Coronavirus pandemic, with the budget deficit since the start of the current tax year surpassing its full-year peak during the global financial crisis. The government has now borrowed 173.7 billion pounds ($ 221.8 billion) in the …<\/p>\n","protected":false},"author":9,"featured_media":33019,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6827,49,36],"tags":[7146,7145,6835],"class_list":["post-34472","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-daily-economic-reports","category-economic-reports","category-market-updates","tag-debt","tag-publilc","tag-uk"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/34472","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=34472"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/34472\/revisions"}],"predecessor-version":[{"id":34473,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/34472\/revisions\/34473"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/33019"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=34472"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=34472"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=34472"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}