UK borrowing hit record £31,600,000,000 in November

Public Sector debt has reached £2.1 trillion (Picture: Getty)

Government borrowing rocketed to a high of £31.6 billion in November as efforts to support the economy through the second wave of the pandemic were ramped up.

The Office for National Statistics (ONS) said last month’s borrowing – excluding state-owned banks – soared by £26 billion year on year and marked the highest seen in November and the third highest in any month since records began in 1993.

The latest estimate has pushed public sector net debt to an all-time high of £2.1 trillion.

It means the UK’s overall debt is now around 99.5% of gross domestic product (GDP), which is a measure of the size of the economy – a level not seen since 1962.

The bleak figures come as England braces itself for a third national lockdown to control the spread of a new strain of Covid-19.

The resurgence of the virus since it emerged in March has forced the Government to pump out hundreds of billions to help jobs and businesses survive draconian restrictions.

Earlier this year, a Think Tank warned tax rises of more than £40 billion a year are ‘all but inevitable’ to protect UK Government debt from spiralling out of control.

Recent official forecasts from the Office for Budget Responsibility (OBR) predict borrowing could reach £393.5 billion by the end of the financial year in March, which would be the highest seen since the Second World War.

Borrowing could reach highs not seen since WW2 by March 2021 (Picture: REX)

The Government has launched more than 40 schemes across the UK to help households and businesses through the crisis.

One of the most costly has been the furlough scheme for workers, which was last week extended again until April 2021.

The most recent figures from HM Revenue & Customs showed another £3.4 billion worth of claims were made between November 15 and December 13, taking total claims to £46.4 billion and 9.9 million furloughed jobs.

The ONS said borrowing rose as tax and National Insurance receipts fell by £38.3 billion – or 8.6% – year on year in the eight months to November.

But government support for individuals and businesses during the pandemic contributed to a 30% or £147.3 billion hike in central government spending.

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source https://metro.co.uk/2020/12/22/public-sector-debt-to-hit-new-high-of-2-1-trillion-13789484/