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Getty Photos
The UK authorities borrowed £35.9bn in August as tackling the financial fallout of pandemic took its toll on the general public funds, official figures present.
The determine – the distinction between spending and tax revenue – was £30.5bn greater than it borrowed in August final 12 months.
The rise meant that the borrowing determine hit its highest quantity for August since information started in 1993.
Borrowing between April and August totalled £173.7bn – additionally a report.
UK debt handed £2tn for the primary time in historical past in July as the federal government spent billions on introducing measures designed to guard the financial system in opposition to the fallout attributable to the coronavirus disaster.
In August, debt hit £2.024tn, £249.5bn greater than the identical time in 2019, in line with the Workplace for Nationwide Statistics.
That determine now exceeds the dimensions of the UK financial system, the best degree of debt seen for the reason that 1960s.
Andrew Wishart, UK economist at Capital Economics, mentioned that rising borrowing figures had been all the way down to the federal government absorbing “a lot of the price of the Covid-19 disaster”.
The federal government has been pressured to cowl a variety coronavirus-related prices – from the furlough scheme and bailouts for rail companies to enterprise charges holidays and VAT cuts for hospitality and tourism.
However “the massive image is that fiscal help will fade over the autumn inflicting many extra job losses to be realised”, Mr Wishart added.
Friday’s figures from the ONS confirmed that whereas billions have been pumped into propping up the financial system, tax receipts have dropped sharply.
The quantity collected by central authorities in taxes dropped to £37.3bn in August, which is £7.5bn lower than a 12 months earlier than.
The quantity of VAT, company tax and revenue tax collected fell “significantly”, the ONS mentioned.