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UK Budget Deficit At Record High

The UK budget deficit widened to the highest on record in August due to lower income and government’s coronavirus relief schemes.

Public sector net borrowing excluding public sector banks, increased by GBP 30.5 billion from last year to GBP 35.9 billion in August, data from the Office for National Statistics showed Friday.

This was slightly was above economists’ forecast of GBP 35.05 billion. This was the highest borrowing in any month since records began in 1993.

During April to August, borrowing was estimated to have been GBP 173.7 billion, which was GBP 146.9 billion more than in the same period last year and the highest borrowing in any April to August period since records began in 1993.

Public sector net debt excluding public sector banks at the end of August 2020 was GBP 2,023.9 billion or around 101.9 percent of gross domestic product.

The extra funding required to support the government’s coronavirus relief schemes combined with reduced cash receipts and a fall in gross domestic product have pushed the public sector net debt, the ONS said.

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