Economics
U.K. Borrowing Set to Pass $360 Billion Amid Virus Blow
- OBR Watchdog raises estimate in latest coronanavirus scenario
- Figures will fuel debate about how to pay for debt legacy
A cyclist travels along the Thames Path in view of the Houses of Parliament in London, on May 11.
Photographer: Jason Alden/BloombergThis article is for subscribers only.
U.K. government borrowing looks on course to exceed 300 billion pounds ($366 billion) in the current fiscal year, according to the latest forecasts from the nation’s fiscal watchdog.
The Office for Budget Responsibility said the budget deficit for 2020-21 could total 298.4 billion pounds, a post-war high of 15.2% of GDP. That’s an increase from the 273 billion pounds projected a month ago. It includes an estimate for the direct effect of government spending and tax decisions to support the economy of 123.2 billion pounds.