Government breaks debt and borrowing records as COVID-19 costs soar

The UK government broke records on rising debt levels, cash requirements, and borrowing in May, as the cost of the COVID-19 pandemic pushed public finances to their limit. We’ve set out our plan to do this in a gradual and safe fashion, including reopening High Streets this week, as we kick start out economic recovery.” Tombs said: “Emergency measures to prevent the sudden collapse in economic activity triggering a tsunami of corporate collapses and loan defaults have placed a colossal burden on the public finances.” He said costs and borrowing were likely to decline in the coming months as government-backed business loan schemes wind up and the furlough scheme comes to an end. “Nonetheless, the Treasury’s demand for cash will remain high by past standards, given the prospect of rising unemployment and the likelihood that the Chancellor will attempt to reinforce the recovery with a stimulative Budget later this year,” Tombs said.