Economics

U.K. Government Debt Hits Level Not Seen in 57 Years

  • Budget deficit jumps most on record in May as spending mounts
  • Tax revenues plunge as virus restrictions shutter firms
Photographer: Hollie Adams/Bloomberg
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U.K. government debt rose above 100% of gross domestic product in May for the first time since 1963, reflecting a precipitous drop in economic output and a surge in spending to counter the fallout from the coronavirus pandemic.

Borrowing increased by more than 100 billion pounds ($124 billion) in the two months to May, as tax revenue plunged and authorities deployed a massive support package to save jobs and keep businesses afloat during the lockdown.