The UK government borrowed a record £62bn in April as the coronavirus pandemic takes a toll on economies across the world.
The April borrowing is more than the budgeted deficit for the full year.
The Office for Budget Responsibility forecasts UK government’s borrowing for the whole year will hit £298bn. That would be five times what was budged for the year. Jonathan Athow, the deputy national statistician at the Office for National Statistics, termed the April borrowing as “pretty much unprecedented.”
Athow also referred to “high amounts of uncertainty.” Government tax receipts are falling, even as it financially supports individuals and businesses through the pandemic.
Chancellor Rishi Sunak (pictured) said: “We’ve taken unprecedented steps to provide lifelines to people and businesses with our furlough scheme, grants, loans and tax cuts.”
The pandemic has led to a reversal in the UK government’s fiscal tightening policy, in line with most government’s around the world it has moved to bolster its shocked economy. According to the IMF, governments globally have announced $9trn worth of stimulus to shore up their economies.
“We have to come to terms with the fact that Britain is poorer and the economy is smaller than it would have been,” former chancellor George Osborne told the BBC.
Meanwhile, borrowings should ease now as business activity is gradually restarting. Also, interest rates have fallen and many expect them to enter the negative territory. Lower interest rates make borrowing cheaper.
Charlie McCurdy, a researcher at the Resolution Foundation, said: “Record low interest rates mean the UK’s higher debt burden should remain more than manageable.”
Note: These are testing times for individuals. If you’re interested in raising finance to see you through this tough period, see our list of recommended loan providers. We’ve also compiled a list of loan providers for people with bad credit.
Trusted & Regulated Stock & CFD Brokers
What we like
- 0% Fees on Stocks
- 5000+ Stocks, ETFs and other Markets
- Accepts Paypal Deposits
Min Deposit
$200
Charge per Trade
Zero Commission on real stocks
64 traders signed up today
Visit Now67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Available Assets
- Total Number of Stocks & Shares5000+
- US Stocks
- German Stocks
- UK Stocks
- European
- ETF Stocks
- IPO
- Funds
- Bonds
- Options
- Futures
- CFDs
- Crypto
Charge per Trade
- FTSE 100 Zero Commission
- NASDAQ Zero Commission
- DAX Zero Commission
- Facebook Zero Commission
- Alphabet Zero Commission
- Tesla Zero Commission
- Apple Zero Commission
- Microsoft Zero Commission
Deposit Method
- Wire Transfer
- Credit Cards
- Bank Account
- Paypall
- Skrill
- Neteller
What we like
- Sign up today and get $5 free
- Fractals Available
- Paypal Available
Min Deposit
$0
Charge per Trade
$1 to $9 PCM
Visit Now
Investing in financial markets carries risk, you have the potential to lose your total investment.
Available Assets
- Total Number of Shares999
- US Stocks
- German Stocks
- UK Stocks
- European Stocks
- EFTs
- IPOs
- Funds
- Bonds
- Options
- Futures
- CFDs
- Crypto
Charge per Trade
- FTSE 100 $1 - $9 per month
- NASDAQ $1 - $9 per month
- DAX $1 - $9 per month
- Facebook $1 - $9 per month
- Alphabet $1 - $9 per month
- Telsa $1 - $9 per month
- Apple $1 - $9 per month
- Microsoft $1 - $9 per month
Deposit Method
- Wire Transfer
- Credit Cards
- Bank Account
Share
