UK national debt tops £ 2 trillion
In December 2020, government borrowing rose to a record £ 34.1bn, according to the BBC. According to the National Statistical Office (ONS), this is the largest December deficit in the entire history of budget reporting since 1993.
The total loan amount for the 2020-2021 financial year was £ 270.8 billion – £ 212.7 billion more than in the previous year. Analysts at the Office of Fiscal Responsibility (OBR) say it will be £ 393.5 billion by March 2021.
British public debt has risen to £ 2.13 trillion and now stands at 99.4% of GDP.
Treasury Secretary Rishi Sunak planned to present the UK budget in the fall of 2020, but due to the pandemic, the speech was postponed to March 2021. Nevertheless, it is already known that in order to combat the consequences of the pandemic, the salaries of all civil servants will be frozen with the exception of doctors, nurses and workers with incomes below £ 24 thousand a year – so they will receive £ 250 more.
Economists disagree over taxes. Some say that Sunak will not dare to raise them in the context of an unstable economy. Others are confident that taxes will rise as early as 2022 – in this way the government will try to stabilize the ratio of public debt to GDP.