Updated: Aug 24, 2020
LONDON: U.K. Public debt has risen to two-trillion pounds for the first time ever, during the ongoing pandemic and coupled with the subsequent actions taken by the U.K. Government to protect public health and the economy.
The U.K’s Government deficit (its projected annual borrowing) is also the highest since the so called ‘Great Recession’ of 2008, at £150bn. This is due in part to the UK's furlough scheme, that has funded 80% of worker's wages up to £2500 per person, per month.
Economic analysts believe there is worse to come, with the economic forecast for the period after the Government’s job retention scheme appearing bleak.
The Chancellor or the Exchequer, Rishi Sunak MP said:
Today’s figures are a stark reminder that we must return our public finances to a sustainable footing over time, which will require difficult decisions’ but that ‘Without that support things would have been far worse.
Despite this, borrowing this financial year is expected to be a mere 17% of national gross domestic product (GDP).