Economics

U.K. Posts Record Budget Deficit; Retail Sales Drop on Virus

  • April figure all but equals borrowing for previous fiscal year
  • U.K. retail sales collapsed by almost a fifth in the month
Photographer: Simon Dawson/Bloomberg
Lock
This article is for subscribers only.

Britain posted a record budget deficit in April as the government unleashed an unprecedented package to prevent the collapse of the virus-stricken economy.

The figures reflect the cost of interventions announced by Chancellor Rishi Sunak, including paying the wages of 8 million furloughed workers, a surge in welfare claims and the hit to tax revenue as the economy plunged into recession. The price may yet go higher the longer the lockdown restrictions last.