Coronavirus spending to swell UK borrowing by extra 120 billion pounds: think tank

Coronavirus spending to swell UK borrowing by extra 120 billion pounds: think tank

© Reuters. FILE PHOTO: Spread of the coronavirus disease (COVID-19) in London

LONDON (Reuters) – Britain’s efforts to keep its economy afloat during the coronavirus crisis are likely to add 120 billion pounds to government borrowing in the coming financial year, more than triple the amount forecast recently, a think tank said on Thursday.

“Based on the information we have now, it would not be surprising if they were to add around 120 billion pounds to borrowing, more than tripling the amount forecast just weeks ago and pushing borrowing up to 177 billion pounds or 8% of national income,” IFS researchers Carl Emmerson and Isabel Stockton said.

Last week, British finance minister Rishi Sunak took the historic step of announcing that the British state would pay 80% of the wages of private sector workers, who number around 28 million, in a bid to reduce an expected surge in unemployment.

He is due to set out help for the self-employed later on Thursday, adding to a raft of other measures.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source : Reuters Link

Follow 3-www.NET

Category Latest Posts