UK debt soars in June amid coronavirus pandemic

0
62


Image copyright
Getty Images

The UK government borrowed £ 35.5 billion in June, around five times more than the same month last year, with the coronavirus continuing to weigh on public finances.

That figure brought total public debt to a record £ 1.98 trillion.

However, the monthly borrowing amount was lower than in May and was in line with expectations.

The reopening of non-essential retailers and other businesses in June resulted in lower holiday spending and higher taxes.

Nonetheless, the borrowing figure in June was still the third highest since records began in 1993.

The National Statistics Office (ONS) has warned that its borrowing estimates are currently “subject to greater uncertainty than usual.”

He downgraded the amount of May borrowing from £ 9.8bn to £ 45.5bn, mainly because tax revenues and national insurance contributions were higher than expected.

Chancellor Rishi Sunak said: “It is clear that the coronavirus has had a significant impact on our public finances, but we know that without our response things would have been much worse.

“The best approach to ensure the sustainability of our public finances in the medium term is to minimize the economic scars caused by the pandemic.

“Our Jobs Plan does this by providing strong, targeted support where it’s needed most, so no one is left without hope as we reopen our economy.

“I am also clear that in the medium term, we must, and we will, put our public finances on a sustainable basis. “

LEAVE A REPLY

Please enter your comment!
Please enter your name here