Economics
Biggest U.K. Stimulus Since 1992 Relies on Borrowing Binge
- Finance minister Sunak’s budget avoided large tax increases
- Bond yields show governments can borrow to finance spending
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The U.K.’s largest fiscal giveaway in almost three decades will be rooted in a borrowing binge that takes advantage of rock-bottom interest rates.
Rishi Sunak, the country’s finance minister, on Wednesday announced a 30 billion-pound ($39 billion) spending spree that ended years of austerity and laid out the most comprehensive response to the coronavirus threat among advanced economies. Just hours before his address, the Bank of England delivered an emergency interest-rate cut and unveiled other steps to help struggling businesses.