The federal government borrowed £19.1bn final month, marking the best determine for February since data started amid the spiralling value of help measures through the pandemic.
Figures from the Workplace for Nationwide Statistics (ONS) confirmed public borrowing ballooned thirteenfold to £19.1bn in February this 12 months – up from £1.5bn in the identical month a 12 months earlier.
Borrowing for the 12 months thus far has reached £278.8bn — marking a primary quarter document. Authorities our bodies have spent an estimated £72.6bn on day-to-day actions in February 2021, together with £3.9bn on coronavirus job help schemes.
The determine simply dwarfs the degrees of borrowing seen within the aftermath of the monetary disaster within the UK.
Whole public sector internet debt has now risen to £2.13 trillion, after a £330bn rise over the primary eleven months of the monetary 12 months, in accordance with the ONS.
It means public internet debt now stands at 97.5 per cent of GDP — a degree not seen because the early Nineteen Sixties.
The Workplace for Finances Duty (OBR) has stated that public debt ranges are anticipated to push via the 100 per cent mark and hit ranges not seen because the Second World Battle.
Information from the ONS additionally confirmed a fall in tax earnings, notably from decrease VAT, enterprise charges and gasoline obligation. The statistics physique stated earnings tax receipts “proceed to recommend that the lack of jobs (or lack of jobs development) is on the decrease finish of the earnings distribution”.
The ONS stated: “Though the influence of the pandemic on the general public funds is turning into clearer, its results should not absolutely captured on this launch, which means that estimates of accrued tax receipts and borrowing are topic to higher than typical uncertainty.”
The federal government additionally stated it might obtain £1.1bn from promoting a part of its stake in Natwest Group, by promoting them again to the financial institution.
The sale, which is ready to finish on Tuesday, will minimize the scale of the federal government’s stake within the banking group from nearly 62 per cent to 59.8 per cent.