The government’s debt is currently 2.2trn
As lockdowns are eased and the UK continues to recover, government borrowings have declined in May compared to 12 months ago.
As government spending continued to outperform tax revenues, borrowings were £19.4 billion lower than last May, at £24.3 billion.
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Measures such as the Furlough scheme have led to record levels of borrowing.
The government’s debt is currently £2.2trn, with all borrowings incurred over the past year. This is 99.2% of GDP, the last seen in the 1960s.
The National Bureau of Statistics (ONS) believes the government borrowed £299.2 billion during the fiscal year ending in March.
Danni Hewson of AJ Bell Financial Analyst commented on government borrowing figures today.
“How you view public sector finances today depends on whether you’re half the glass person or empty. On the other hand, borrowings in May were 190 compared to the previous year. It fell by more than £100 million, on the other hand, the second highest number since the start of the record, up nearly £19 billion from May 2019,” Hewson said.
“Revenues increased by £7.5 billion compared to the same time last year. It was helped by a 133% increase in fuel tax and a nearly 90% leap in stamp tax revenue, but what’s in and out There is still a big gap between being there, and interest payments on all of its debts have risen significantly, up 26% year-on-year, but the majority of that rise has fallen to changes in RPI. .”
“However, the gap is narrowing as the economy heals. As the country returns to work, Farlow costs have dropped by a whopping 75%, but not of any use to tax revenues, but income from alcohol obligations has decreased by 20%. The fact reflects a change in fate, as people can re-engage with friends. Family.
“The pandemic has left a major scar on the country’s finances, and reopening is an ointment, but requires careful application. If it’s too early, it will be able to withstand the inflationary mental worries that have caused many concerns. . If it’s not enough, too late, or if the variant requires another reverse, there’s a difficult conversation about spending and taxation. But today, half a day, half a day, income is high, less spent, and to the accelerator. It feels like a gentle foot.”
