Government borrowing at highest since WW2.

Government borrowing at highest since WW2.

The ONS also said public borrowing as a percentage of GDP, or national output rose, to 14.5% – also the highest since the end of the second world war when it reached 15.2% in 1946.
The huge amount of borrowing over the past year has now pushed public sector net debt up to £2.142 trillion, which is 97.7% of GDP – a rate not seen since the early 1960s.
Michal Stelmach, senior economist at KPMG, said: “Rising debt is largely an unfortunate consequence of the government’s focus on shielding the economy as much as possible from the impact of Covid-19.
“However, doing otherwise could have created long-lasting scars which would be far worse for fiscal sustainability.”
Despite the record annual figure, the ONS said it was £24.3bn lower than the Office for Budget Responsibility (OBR), the fiscal watchdog, had forecast in March.
Ruth Gregory at Capital Economics said: “If we are right in thinking the economic recovery will be faster and fuller than the OBR anticipates, borrowing will probably fall more quickly than most expect.”

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