Market news
19.03.2021, 09:02

UK set to undershoot towering COVID-19 borrowing forecast

Reuters reports that Britain’s record-breaking borrowing to pay for the coronavirus crisis is likely to be a little lower than forecast, after data published on Friday showed the budget deficit grew by less than expected in the first two months of 2021.

The budget deficit in the first 11 months of the financial year has soared to almost 279 billion pounds, the highest relative to the size of the economy since World War Two.

But unless there is a major borrowing surge in March, the deficit looks likely to come in below an estimate set by the Office for Budget Responsibility.

The OBR said this month that the deficit was likely to surpass 350 billion pounds in the financial year which ends on March 31.

The year-to-date figures published on Friday by the ONS do not include the 27.2 billion pounds of COVID loan write-offs that the OBR estimates will need to be made.

Finance minister Rishi Sunak on March 3 announced a budget plan which included 65 billion pounds in further stimulus to help the economy through what he hopes will be a gradual lifting of COVID restrictions by the end of June.

Responding to Friday’s data, Sunak said his 352 billion pounds of total extra spending and tax cuts so far had been the responsible thing to do.

Borrowing in the 2021/22 financial year, which starts in April, is estimated to fall to 234 billion pounds according to the OBR, still more than four times the deficit in 2019/20 which included only one month of the coronavirus crisis.

© 2000-2021. All rights reserved.

This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Feedback
Live Chat E-mail
Up
Choose your language / location