X

Mortgage & Property

New Insurance Professional

Family Office Bulletin

Mortgage Property

Insurance Professional

Family Office

UK’s £34.1bn December borrowing exceeds forecasts

(Sharecast News) – The UK borrowed £34.1bn in December, exceeding forecasts and recording the highest level for that month on record as Covid-19 forced the government to issue more debt, official figures showed.
Public sector net borrowing was £28.2bn more than a year earlier, the third-highest month on record and the highest December figure since records began in 1993, the Office for National Statistics said. Economists had on average expected borrowing of £32bn.

Central government current spending was £86.2bn in December, up £26.1bn from a year earlier. The figure includes £10bn on Covid-19 job support. Tax receipts fell £1.4bn to £43.6bn as VAT and business rate receipts fell because of the Covid-19 crisis.

Government borrowing in the nine months to the end of December was £270.8bn, up £212.7bn from a year earlier and the highest figure for that period on record. Since December the UK has entered a new strict Covid-19 lockdown to stem a rising tide of infections with restrictions likely to last many weeks.

Chancellor Rishi Sunak is preparing his budget, due in early March. He is under pressure to maintain support for the economy and households during the crisis but he has told Tory MPs he wants to deal with the deficit as soon as possible. Many economists argue reducing support or increasing taxes at this stage of the crisis would be damaging in the long run.

Charlie McCurdy, a researcher at the Resolution Foundation thinktank, said: “This level of spending may be eye-wateringly large but it is absolutely necessary both to tackle the virus and protect families and firms from the crisis.”

This Week’s Most Read

  • Sir Keir Starmer in pub brawl?

    Predictions of scuffles in pubs came true today, with a landlord being ejected from his own pub by interlopers. Sir Keir Starmer had been listening

  • Class of 2021 retirees at risk of running pension pots dry

    Two thirds (66%) of 2021 retirees risk not having the pension savings to sustain their planned retirement income, according to a new report launched today

  • Sir Keir Starmer, pubs and COVID – taking the piss, not taking a piss..

    We thought you weren’t allowed into pubs these days? Incredible scenes erupted today outside the Raven Pub in Bath, as Sir Keir Starmer was confronted

  • New financial advice service from Vanguard aimed at retirement savers

    Designed for investors saving for retirement, Vanguard Personal Financial Planning launches on the award-winning Vanguard UK Personal Investor platform – vanguardinvestor.co.uk/financial-advice. The service offers personalised

  • The Coming Decade for Climate Solutions

    Randeep Somel, Fund Manager, M&G Climate Solutions Fund, is finding reasons to be cheerful as he uncovers some of the powerful drivers of change which

  • Deepbridge achieves record EIS fundraising levels

      Record £29 million deployed across 37 growth companies Deepbridge attributes success to intermediary relationships and sector focus Venture capital investment manager Deepbridge Capital today

  • A Positive Charge

    Ben Constable-Maxwell, Head of Impact Investing at M&G Investments, is one of the driving forces behind the move to integrate ESG, sustainability and impact investing

  • Advice firm highlights how growing reputation boosts referrals amid pandemic

    National financial advice firm, Tenet&You, which opened its new offices at Haddington in December last year, has reported an increase in new business since the

  • The Superbia Group commits to accountability and living its core values with the formation of a new independent ESG Advisory Board

    The Superbia Group has today signalled its intent to live its values by announcing the appointment of a new independent ESG Advisory Board. The new

  • A SPAC-tacular surge

    Written by Christopher Butcher, Momentum Global Investment Management During a period of extreme volatility and a global pandemic, the initial public offering (IPO) market had

IFA Magazine

Keep updated on the most important financial events 

Make sure you are an informed

wealth professional..

Adblock Blocker

We have detected that you are using

adblocking plugin in your browser. 

IFA Magazine