The UK government borrowed £19.1 billion in February
The UK government’s borrowing reached record highs in February as a result of the need to support the UK economy during the pandemic.
In February, the UK government borrowed £19.1 billion, the highest number since 1993 when the 1993 record began.
However, UK borrowings during February were not as high as some economists had predicted.
The National Bureau of Statistics (ONS) said borrowings were set to rival the office due to the forecast of £355 billion for 2020/21.
Looking ahead, borrowings are even lower as UK finances appear to be stabilizing economic activity during the latest lockdown and likely to recover faster than OBR expects It may be.
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On Thursday, the Bank of England (BOE) upgraded its UK economy outlook primarily thanks to vaccine rollouts. We also reaffirmed that there is no rush to reduce the level of support we are providing to help us recover from the Covid-19 crisis.
Thomas Pugh, UK economist at Consultancy Capital Economics, said that it was £63.2 billion, not below the level that the government raised £64.1 billion in February 2020.
“However, the government spent £3.8 billion in February, making government spending very high at £72.6 billion in February. The total spending in February was £15 billion compared to February 2020. It’s high, slightly below the £752 billion expenditure in January 2021,” Pugh said.
“This leaves cumulative borrowings behind, £288.8 billion for just one month until the end of the fiscal year. But figures show that an estimated amortization of government-supported loans of £24 billion is not included yet.”
“In any case, we believe that the fiscal forecasts further ahead are based on overly pessimistic forecasts of GDP growth. If we are right, borrowing is expected by OBR over the next few years. It may be lower than that, allowing the Prime Minister to cancel some of the tax payments proposed before the 2024 general election.”
