Public sector internet borrowing hits £22.3bn in October as debt pile grows | Enterprise Information
Public sector internet borrowing is estimated to have been £22.3bn in October – the sixth-highest borrowing in any month since month-to-month information started in 1993.
The determine, from the Workplace for Nationwide Statistics (ONS), implies that public sector internet debt stood at £2.076trn by the top of October – or 100.8% of GDP, a stage not seen for a lot of many years.
Borrowing for the primary seven months of the monetary yr is estimated to have been £214.9bn – the best in any April to October interval and the sixth-highest borrowing in any month since information started in 1993.
This was principally as a result of large price of the coronavirus response.
Chancellor Rishi Sunak, mentioned: “We have supplied over £200bn of assist to guard the financial system, lives and livelihoods from the numerous and much reaching impacts of coronavirus.
“That is the accountable factor to do, nevertheless it’s additionally clear that over time it is proper we guarantee the general public funds are placed on a sustainable path.”
Britain is on track to borrow virtually £400bn this yr, the best borrowing relative to the scale of the financial system because the Second World Battle.
For now at the least, borrowing is reasonable, however the Financial institution of England has warned that some long-term financial injury is probably going, even after the pandemic is over.
The federal government has already introduced the biggest increase in military spending since the Cold War, and The Occasions has reported that round five million public sector workers will have their pay frozen.
The chancellor is predicted to make use of next week’s spending review to restrict pay rises within the public sector to at or beneath inflation, with solely NHS docs and nurses anticipated to be exempt in recognition of their work throughout the pandemic.