Biggest deficit since Second World War as borrowing hits £300bn
1 min read
Government scales back plans to issue more debt as the UK’s resilient economy starts to rebound The Government borrowed another £28bn in March, taking the deficit for the financial year to more than £300bn. This amounts to 14.5pc of GDP, the highest level since the Second World War. However this historic deficit was still smaller…
Government scales back plans to issue more debt as the UK’s resilient economy starts to rebound
The Government borrowed another £28bn in March, taking the deficit for the financial year to more than £300bn.
This amounts to 14.5pc of GDP, the highest level since the Second World War.
However this historic deficit was still smaller than previously feared, with the economy having proven more resilient than expected. Fresh data shows strong signs of a bounce back, with rising retail sales and rebounding business output.
Analysts at Capital Economics expect the UK to end 2022 with GDP 3.7pc higher than pre-Covid levels, outstripping European rivals. They expect the German economy to end next year up 2.7pc, with France just about getting back to pre-crisis levels and output in Italy and Spain still stuck below February 2020’s size.
As a result, UK officials are now cutting back planned sales of bonds as the Government no longer needs to raise as much cash.
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