UK public debt at 97.7% of GDP
The UK borrowed more money than ever since World War II as it sought to deal with the damage caused by the coronavirus pandemic.
This states that the UK borrowed £33.1 billion in the year that ends in March, according to the National Statistics Office (ONS). That’s an increase of £246.1 billion, up from £57.1 billion the previous year.
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The level of government borrowing was historically high, but not as much as expected. The Treasury then told the financial markets on Friday morning that it would issue £43.3 billion less in 2021/22, according to the Financial Times.
However, tax revenues have plummeted and the budget deficit remains wide as the impact of the coronavirus pandemic has increased spending on health and flow schemes.
Tax revenues fell during a surge in public spending on health services and Farragh schemes.
Last year, the UK government borrowed 14.5% of its GDP. This was the last time that Britain borrowed 15.2% of all produced in the economy after World War II.
Due to the level of borrowing, the UK’s total debt accumulated at 97.7% of GDP, reaching its highest level since the early 1960s.
Michal Stelmach, senior economist at KPMG, said your debt needs to surge in order to cause further damage to the economy that could have occurred during the pandemic.
“If not, they could have created long-term scars that would be much worse for fiscal sustainability,” he said.
