Government borrowing has hit £208billion in six months of coronavirus crisis
4 years, 2 months ago

Government borrowing has hit £208billion in six months of coronavirus crisis

Daily Mail  

The government has borrowed more than £208billion over six months to manage the crippling economic effects of the coronavirus crisis. National debt hit £2.06trillion at the end of last month, equivalent to 103.5 per cent of the size of the whole economy. There have been predictions that the situation will get even tougher as millions face unemployment as the economy struggles and coronavirus cases rise again. Chancellor Rishi Sunak, said: 'Whilst it's clear that the coronavirus pandemic has had a significant impact on our public finances, things would have been far worse had we not acted in the way we did to protect millions of livelihoods.

 worse  hit  economy  crisis  millions  jobs  public  pandemic  months  borrowing  208billion  month  tax  protect  coronavirus

History of this topic

ONS figures reveal surge in borrowing: does this mean taxes will have to rise again?
1 month, 2 weeks ago

ONS figures reveal surge in borrowing: does this mean taxes will have to rise again?

The Independent  

The latest public sector borrowing figures are enough to have anyone inside 11 Downing Street heading for the drinks cabinet. The total came to £17.4bn in October; that’s £1.6bn more than this time last year, £5bn higher than City forecasts, and the second highest October number since monthly records began in January 1993. The government also spent £9.1bn on interest …

Interest on national debt tops £100bn a year as a result of Labour's Budget borrowing binge
2 months, 1 week ago

Interest on national debt tops £100bn a year as a result of Labour's Budget borrowing binge

Daily Mail  

Britain will spend more than half a trillion pounds servicing the national debt between now and the end of the decade, Budget documents reveal. The Office for Budget Responsibility said debt interest payments would total £672billion between 2024-25 and 2029-30 – or more than £100billion a year. Ball and chain: The Office for Budget Responsibility said debt interest payments will …

Will Labour borrow to invest Britain out of its ‘black hole’?
3 months ago

Will Labour borrow to invest Britain out of its ‘black hole’?

The Independent  

There’s been frantic speculation, at least in those circles interested in such matters, that the government is set to revise the fiscal framework inherited from the Conservatives. At the moment, the projection sees debt falling by about £9bn in five years – Reeves’s margin of safety or “headroom”. Experts say that the most liberal redefinition of the national debt could …

UK national debt could reach nearly 300% of GDP in next 50 years, watchdog warns
3 months, 4 weeks ago

UK national debt could reach nearly 300% of GDP in next 50 years, watchdog warns

The Independent  

Sign up for the View from Westminster email for expert analysis straight to your inbox Get our free View from Westminster email Get our free View from Westminster email SIGN UP I would like to be emailed about offers, events and updates from The Independent. Public debt is currently at its highest since the early 1960s, sitting at a total …

Borrowing surges to higher than forecast £3.1bn in July in blow to Rachel Reeves
4 months, 2 weeks ago

Borrowing surges to higher than forecast £3.1bn in July in blow to Rachel Reeves

The Independent  

Sign up for the View from Westminster email for expert analysis straight to your inbox Get our free View from Westminster email Get our free View from Westminster email SIGN UP I would like to be emailed about offers, events and updates from The Independent. open image in gallery Rachel Reeves is planning to raise taxes and cut spending in …

Britain’s debt timebomb is about to explode – and politicians are too timid to defuse it
1 year, 1 month ago

Britain’s debt timebomb is about to explode – and politicians are too timid to defuse it

The Telegraph  

300 years of borrowed money It was exactly the fear of this sort of behaviour that caused the House of Commons to give away its right to initiate spending in 1706. After all, there’s a good chance they won’t be in office when the bill eventually comes due – and an even lower one if they start to impose fiscal …

Government borrowing binge undermining faith in OBR forecasts, says IFS
1 year, 3 months ago

Government borrowing binge undermining faith in OBR forecasts, says IFS

The Telegraph  

Too much government borrowing is undermining faith in official economic forecasts, the Institute for Fiscal Studies has warned. The think tank said a raft of unexpected and expensive policies rolled out by recent Chancellors had led to a surge in the size of the state and fuelled Britain’s deficit, while also making forecasts less accurate. The result is a “ratchet” …

Skyrocketing interest rates forcing more households into debt, charity finds
1 year, 5 months ago

Skyrocketing interest rates forcing more households into debt, charity finds

The Independent  

Get the free Morning Headlines email for news from our reporters across the world Sign up to our free Morning Headlines email Sign up to our free Morning Headlines email SIGN UP I would like to be emailed about offers, events and updates from The Independent. Citizens Advice said the number of people it was supporting who could no longer …

German Cabinet approves a lower 2024 budget as it eyes a return to financial ‘normality’
1 year, 6 months ago

German Cabinet approves a lower 2024 budget as it eyes a return to financial ‘normality’

Associated Press  

BERLIN — Germany’s Cabinet on Wednesday approved a draft 2024 budget that foresees lower spending, with defense among the exceptions, as Europe’s biggest economy sticks to rules limiting borrowing that were suspended during the coronavirus pandemic. Germany plans to reach a NATO target of spending 2% of gross domestic product on defense next year, a measure on which it has …

How raising the nation’s debt limit could reduce spending of some coronavirus relief funds
1 year, 7 months ago

How raising the nation’s debt limit could reduce spending of some coronavirus relief funds

Associated Press  

With the pandemic officially over, leftover coronavirus relief money for vaccines, public health initiatives and other programs has become a target as negotiators try to reach a budget deal to raise the nation’s debt limit. HOW MUCH IS AT STAKE The Congressional Budget Office estimates that halting the use of unobligated pandemic relief funds would result in a net spending …

18% drop since 2020 in people with reported medical debt
1 year, 10 months ago

18% drop since 2020 in people with reported medical debt

Associated Press  

WASHINGTON — The number of people with medical debt on their credit reports fell by 8.2 million — or 17.9% — between 2020 and 2022, according to a report Tuesday from the U.S. Consumer Financial Protection Bureau. The agencies will also extend the time it takes to add medical debt to reports from six months to one year, possibly giving …

18% drop since 2020 in people reporting medical debt
1 year, 10 months ago

18% drop since 2020 in people reporting medical debt

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy The number of people with …

New UK leader to face highest government debt in 60 years
2 years, 2 months ago

New UK leader to face highest government debt in 60 years

Associated Press  

LONDON — British government debt rose to the highest level in almost 60 years last month and retail sales slumped, underscoring the scale of the economic challenges facing whoever replaces Prime Minister Liz Truss after her administration imploded under the weight of its failed financial plan. “Today’s weaker-than-expected public borrowing figures … are a reminder that amidst the current political …

Impending economic crisis will dwarf coronavirus crisis, says credit insurer Allianz
2 years, 2 months ago

Impending economic crisis will dwarf coronavirus crisis, says credit insurer Allianz

NL Times  

The looming economic crisis will make the coronavirus crisis look like nothing, according to credit insurer Allianz Trade. Rarely have so many negative facts come together simultaneously,” Johan Geeroms, director of risk underwriting in the Benelux for Allianz, said in a press statement. And, partly due to the 10 percent increase in the minimum wage the government announced for next …

Credit card borrowing surges by £1bn as households grapple with surging bills
2 years, 5 months ago

Credit card borrowing surges by £1bn as households grapple with surging bills

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Britons racked up an extra …

Interest bill for UK's £2.4tn debt mountain more than DOUBLES to record £19.4bn in June
2 years, 5 months ago

Interest bill for UK's £2.4tn debt mountain more than DOUBLES to record £19.4bn in June

Daily Mail  

The government plunged deeper into the red today as interest on the £2.4trillion debt mountain hit an eye-watering new record. was more than double the same month last year, and a peak since records began in 1997 The debt interest costs in June dwarfed all previous monthly figures since records began in 1997 Mr Zahawi said: 'We recognise that there …

Why Sunak is digging in on National Insurance rise
2 years, 11 months ago

Why Sunak is digging in on National Insurance rise

The Telegraph  

As the Met moves in on Downing Street over “partygate” claims, the Chancellor appears in no mood to throw a spending lifeline to his struggling neighbour. This time around, however, Rishi Sunak used the data to make a pointed rebuttal to Tory critics of his National Insurance Contributions rise – and distance himself from Johnson’s refusal to guarantee a hike …

As rich-poor divide widens between nations, UN urges reform
3 years, 3 months ago

As rich-poor divide widens between nations, UN urges reform

Al Jazeera  

Developing countries could shoulder most of the cost of the coronavirus crisis, a new report from the UN warns. “The danger of a lost decade ahead remains a very real one,” Richard Kozul-Wright, UNCTAD’s director of globalisation and development strategies, told Al Jazeera. “And so far, the discussion of reform of the multilateral system, along the lines that followed the …

Borrowing cheer to prove short-lived for Chancellor, warns think tank
3 years, 5 months ago

Borrowing cheer to prove short-lived for Chancellor, warns think tank

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Official figures on Wednesday are expected to show borrowing …

Long or short Covid? The true state of the UK economy
3 years, 10 months ago

Long or short Covid? The true state of the UK economy

The Independent  

Long Covid describes the symptoms of people who have been infected by the coronavirus, survived it, and yet who just can’t seem to return to normal health. If one uses measures which ignore quality adjustments, the UK’s economic performance looks closer to other G7 countries, although it remains very possible that less hesitation from ministers last year in imposing restrictions …

Are UK businesses facing catastrophe due to vast coronavirus debt burdens?
4 years ago

Are UK businesses facing catastrophe due to vast coronavirus debt burdens?

The Independent  

The coronavirus pandemic has delivered the largest economic shock to the UK economy in three centuries. Recommended How corporate Britain got screwed by Brexit “Without it, we’d be in a very different situation – and a very grave one at that.” Under various state-backed schemes rolled out by the Treasury since May, 1.5 million firms have tapped some £65bn of …

Spending review: Rishi Sunak’s extra £55bn to fight Covid brings bill for the disease to £12,000 per household
4 years, 1 month ago

Spending review: Rishi Sunak’s extra £55bn to fight Covid brings bill for the disease to £12,000 per household

The Independent  

Sign up for the View from Westminster email for expert analysis straight to your inbox Get our free View from Westminster email Get our free View from Westminster email SIGN UP I would like to be emailed about offers, events and updates from The Independent. And the scale of the economic emergency wrought by the pandemic was laid bare in …

Dutch gov't taking risks in providing Covid support: Court of Audit
4 years, 1 month ago

Dutch gov't taking risks in providing Covid support: Court of Audit

NL Times  

In providing coronavirus support loans and guarantees to companies, the government is not consistently following the rules meant to make sure that Ministers don't take major risks with such financial transactions, the Court of Audit said on Wednesday, NOS and the Volkskrant report. Over the past months, the government provided 62.7 billion euros in loans and guarantees, mainly to businesses …

UK national debt: who does the government owe £2 trillion to and should we be concerned?
4 years, 1 month ago

UK national debt: who does the government owe £2 trillion to and should we be concerned?

The Independent  

The UK’s national debt has hit its highest level in almost 60 years after the government spent another £22bn to help the country through the coronavirus crisis. The government issues bonds – contracts to borrow money, paying a set amount of interest over a given period of time – which are bought by private investors. In the years following the …

Economic impact of coronavirus will hit next year, experts say
4 years, 1 month ago

Economic impact of coronavirus will hit next year, experts say

Dutch News  

Despite the slight drop in the unemployment rate this week, and signs of a speedier economic recovery from the coronavirus crisis, the big hit will be felt in the second quarter of next year, according to experts. In total, 102 banking, legal and investment experts took part in a survey on the likely impact of the crisis carried out by …

Global economic bailout is running at $19.5 trillion. It will go higher
4 years, 1 month ago

Global economic bailout is running at $19.5 trillion. It will go higher

CNN  

London CNN Business — Governments and central banks have promised to shell out $19.5 trillion since the coronavirus erupted to “put a floor under the world economy,” according to the International Monetary Fund. While coronavirus vaccine candidates point to improved prospects for the global economy next year, they won’t help countries much in the immediate future. In the United States, …

UK ’sleep-walking’ into personal debt crisis, warns charity
4 years, 1 month ago

UK ’sleep-walking’ into personal debt crisis, warns charity

Live Mint  

Britain is 'sleep-walking' into a personal debt crisis with the number of people in severe problem debt topping a million due to the coronavirus pandemic, charity StepChange has warned. The charity defines severe problem debt as meeting at least three of its indicators, including falling behind on essential bills or using credit to make debt repayments. "This report paints a …

Government borrows more than a billion pounds PER DAY during coronavirus crisis
4 years, 2 months ago

Government borrows more than a billion pounds PER DAY during coronavirus crisis

Daily Mail  

The crippling impact of coronavirus on the public finances was laid bare today after new figures showed the government borrowed more than £208billion over six months. Another £36.1billion was borrowed in September - the third-highest month on record and compared to just £7billion a year ago - as tax revenues slumped and the Treasury poured out bailout money. Another £36.1billion …

Federal Budget 2020 reveals Australia headed to record debt of almost $1 trillion
4 years, 3 months ago

Federal Budget 2020 reveals Australia headed to record debt of almost $1 trillion

ABC  

Billions of dollars in fast-tracked tax cuts and younger worker wage subsidies underline the Federal Government's budget recovery pitch, as Australia's recession sends debt and deficits to record levels. Key points: Debt and deficits are set to hit record highs as coronavirus savages the economy Debt and deficits are set to hit record highs as coronavirus savages the economy Businesses …

German Cabinet approves 2021 budget with high borrowing
4 years, 3 months ago

German Cabinet approves 2021 budget with high borrowing

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Germany's Cabinet on Wednesday approved …

Ministers don’t need to make cuts or up taxes to pay for Covid crisis: economists
4 years, 4 months ago

Ministers don’t need to make cuts or up taxes to pay for Covid crisis: economists

Dutch News  

Despite the billions of euros the cabinet is investing in combating the impact of coronavirus, ministers do not yet have to put up taxes or make spending cuts, according to a group of leading economists. The 10 economists, who were talking to ING bank two weeks ahead of the presentation of the 2021 budget, say there is ‘more than enough’ …

Dutch gov't borrowed €66 billion for Covid support
4 years, 4 months ago

Dutch gov't borrowed €66 billion for Covid support

NL Times  

The Ministry of Finance already borrowed 108 billion euros this year, the vast majority of which is reserved to fund the nearly 60 different emergency measures to help the country through the coronavirus crisis. So far the government reserved 37 billion euros for the first two sets of coronavirus support measures. For example, the government set aside over 9 billion …

British Public Debt Tops 2 Trillion Pounds for First Time Due to Covid-19
4 years, 4 months ago

British Public Debt Tops 2 Trillion Pounds for First Time Due to Covid-19

News 18  

Britain's public debt went above 2 trillion pounds for the first time in July as the government ramped up public spending to cope with the coronavirus pandemic and tax revenues fell, official data showed on Friday. Net debt, excluding public banks, rose to 2.004 trillion pounds, up by nearly 230 billion pounds from July 2019 and equivalent to 100.5% of …

Federal Government deficit hits record high of $86 billion as coronavirus devastates the economy
4 years, 5 months ago

Federal Government deficit hits record high of $86 billion as coronavirus devastates the economy

ABC  

Australia's budget deficit hit almost $86 billion last financial year, the biggest blow to the bottom line since World War II, Treasurer Josh Frydenberg has revealed. Key points: A forecasted $5 billion surplus for 2019-20 ended in a deficit of almost $86 billion A forecasted $5 billion surplus for 2019-20 ended in a deficit of almost $86 billion It is …

Debt and deficit go out the window as the reality of the coronavirus crisis hits home
4 years, 5 months ago

Debt and deficit go out the window as the reality of the coronavirus crisis hits home

ABC  

When will it finally sink in? As Treasurer Josh Frydenberg and Finance Minister Matthias Cormann grimly fronted a media pack in Canberra, fresh after releasing Treasury's latest tally of COVID-19's financial toll, they were peppered with endless questions about how we will ever dig ourselves out of debt after all this Federal Government largesse. Debt, debt and more debt Having …

Tax rises needed to fill £130bn Covid black hole, Chancellor told
4 years, 6 months ago

Tax rises needed to fill £130bn Covid black hole, Chancellor told

The Telegraph  

The Chancellor will need to raise taxes to stop Britain’s debt pile spiraling out of control as the legacy of Covid-19 leaves a £130bn hole in the public finances for years, the Institute for Fiscal Studies has warned. Persistent weakness in the economy will leave government borrowing at £158bn next year, and about £130bn until as late as 2024-25, according …

Tsunami of pandemic debt mounting in millions of British households
4 years, 7 months ago

Tsunami of pandemic debt mounting in millions of British households

The Independent  

Sign up to our free money newsletter for investment analysis and expert advice to help you build wealth Sign up to our free money email for help building your wealth Sign up to our free money email for help building your wealth SIGN UP I would like to be emailed about offers, events and updates from The Independent. StepChange this …

Coronavirus could cause a new euro crisis: Dutch Planning Office
4 years, 7 months ago

Coronavirus could cause a new euro crisis: Dutch Planning Office

NL Times  

The coronavirus crisis could lead to a new euro crisis, the Netherlands office for economic policy analysis CPB said after analyzing the vulnerabilities of the financial system. Despite coronavirus support measures implemented by the government, businesses and households are facing increasing financial difficulties. It showed that a quarter of small and medium sized businesses need more money than support measures …

Govt measures to deal with coronavirus impact 'very positive', says former RBI governor Bimal Jalan
4 years, 7 months ago

Govt measures to deal with coronavirus impact 'very positive', says former RBI governor Bimal Jalan

Firstpost  

Former Reserve Bank Governor Bimal Jalan on Thursday described the initiatives taken by the government to mitigate the impact of COVID-19 as “very positive” and hoped that these would help in containing the decline in growth New Delhi: Former Reserve Bank Governor Bimal Jalan on Thursday described the initiatives taken by the government to mitigate the impact of COVID-19 as …

European Union unveils $824bn coronavirus recovery plan
4 years, 7 months ago

European Union unveils $824bn coronavirus recovery plan

Al Jazeera  

Package seeks to avoid a further splintering of economic growth and wealth levels among EU’s 27 member states. The European Commission on Wednesday released details of a coronavirus economic relief package for member countries worth 750 billion euros. The blueprint envisions borrowing the funds and disbursing them as grants and loans to member states, with the lion’s share of aid …

Coronavirus impact on Victorian economy to be 140 times worse than bushfires, Treasury expects
4 years, 7 months ago

Coronavirus impact on Victorian economy to be 140 times worse than bushfires, Treasury expects

ABC  

Victoria is expecting the economic damage of the coronavirus pandemic to be about 140 times worse than the impact of the bushfires on the state's bottom line. Key points: Mr Pallas said the pandemic would shrink the economy by about 14 per cent Mr Pallas said the pandemic would shrink the economy by about 14 per cent Rather than a …

Coronavirus turns UK into a nation of savers
4 years, 7 months ago

Coronavirus turns UK into a nation of savers

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. And the specific triggers have been surprisingly abstract, says …

India’s Modi announces $270bn coronavirus package: Live updates
4 years, 7 months ago

India’s Modi announces $270bn coronavirus package: Live updates

Al Jazeera  

India’s Prime Minister Narendra Modi unveils a $270bn stimulus package to boost the country’s battered economy after a weeks-long lockdown to curb the coronavirus pandemic. 19:50 GMT – Pence to ‘keep distance’ from Trump: White House US Vice President Mike Pence, whose press secretary tested positive for coronavirus, has decided to “keep his distance” from President Donald Trump for a …

UK economy heading for worst crash in 300 years due to coronavirus
4 years, 8 months ago

UK economy heading for worst crash in 300 years due to coronavirus

CNN  

London CNN Business — The UK economy is heading for its worst crash in more than 300 years because of the coronavirus pandemic, according to a new forecast from the Bank of England. The central bank expects a swift economic recovery in 2021, but it cautioned that its forecast, which assumes a gradual easing of social distancing measures and “very …

Where is all the government’s coronavirus rescue spending going?
4 years, 8 months ago

Where is all the government’s coronavirus rescue spending going?

The Independent  

The state’s fiscal response to Covid-19 has been a story of big headline numbers. The Office for Budget Responsibility, the Treasury’s official spending watchdog, has produced a “policy monitoring database” to help the public – and perhaps policymakers themselves – keep track. Employment subsidies: £49bn open image in gallery The furlough scheme is supposed to keep a lid on unemployment …

Coronavirus relief pushing US deficits to staggering heights
4 years, 8 months ago

Coronavirus relief pushing US deficits to staggering heights

Associated Press  

WASHINGTON — Spend what it takes, Washington said as it confronted the coronavirus. CBO Director Phillip Swagel cautioned that there is “enormous uncertainty” to the projections, given the unprecedented nature of the crisis, but it’s plain the economic shock is unlike anything seen since the Great Depression. Even Washington’s few remaining spending hawks say red ink should not be a …

Coronavirus could kill cash in 'months not years', expert warns
4 years, 8 months ago

Coronavirus could kill cash in 'months not years', expert warns

The Telegraph  

There are now “months not years” to rescue the UK’s creaking cash infrastructure, the chief of an influential review has warned, after new research revealed coronavirus could change spending habits for good. As many as three in 10 people could stop using cash as a payment method following a massive decline in withdrawals during the pandemic, experts said, prompting fears …

Coronavirus | Congress delivers nearly $500 billion more in virus aid
4 years, 8 months ago

Coronavirus | Congress delivers nearly $500 billion more in virus aid

The Hindu  

Congress has delivered a nearly $500 billion infusion of coronavirus spending, rushing new relief to employers and hospitals buckling under the strain of a pandemic that has claimed almost 50,000 American lives and one in six U.S. jobs. Anchoring the bill is the Trump administration’s $250 billion funding request to replenish a fund to help small and medium-size businesses with …

Coronavirus modelling from Victorian Treasury predicts unemployment of 11 per cent, falling property prices
4 years, 8 months ago

Coronavirus modelling from Victorian Treasury predicts unemployment of 11 per cent, falling property prices

ABC  

More than a quarter of a million jobs could be lost in Victoria due to the coronavirus pandemic, according to "catastrophic" modelling from the Department of Treasury and Finance. Key points: Unemployment is forecast to rise as high as 11 per cent while property prices are expected to fall by up to 9 per cent Treasurer Tim Pallas said it …

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