UK borrowing jumps in September as Covid support continues

Industry News | 23/10/20

UK government borrowing hit £36.1bn in September as the UK continued its heavy spending to support the economy during the coronavirus pandemic. At the same time, the Treasury scrapped a three-year spending review.

The figure was £28.4bn more than last year and the third highest in any month since records began in 1993, the Office for National Statistics said. The ONS said the pandemic had had an impact on public sector borrowing “unprecedented in peacetime”.

Extra money was needed to pay furlough wages and support businesses. At the same time, tax income fell. Lower spending and corporate profits meant the government received less in VAT and corporation tax.

The national debt is now 103.5% of the size of the UK’s economy, as measured in gross domestic product (GDP).

Source: BBC