Latest data from ONS shows that public sector debt in the UK continues to rise rapidly because of coronavirus, which has reduced tax receipts whilst also increasing government expenditure.
Public sector net debt in October stood at £2,077m, up from £2,059m in September (excluding debt attached to public sector banking interests). This represents 116.5% of GDP.
In the last few weeks, media speculation has turned to how government might stabilize and future-proof government finances.
Chancellor Rishi Sunak will issue a new Spending Review on 25 November, but this will be limited to just the current financial year and the next – making longer term plans under the current circumstances would be very difficult.
At the same time, the independent Office for Budget Responsibility (OBR) will publish a new Economic & Financial Outlook (EFO) report.
This will be of interest to businesses since it will contain impartial forecasts on UK economic performance and the likely impact of both Coronavirus and EU Exit.
UK government debt still escalating
Source: ONS, October 2020
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