Government borrowing in July was £26.7 billion, up by £28.3 billion compared to last year. In the first four months of the financial year the government was forced to borrow £150 billion up by £128 billion on the same period in 2019.
The OBR expects total borrowing in the current financial year to hit £322 billion around 16% of GDP. Total debt increased to £2 trillion, over 100% of GDP.
Rishi Sunak, the Chancellor or the Exchequer explained "The crisis has put the public finances under significant strain. We have taken action to support millions of jobs, businesses and livelihoods. Without that support things would have been far worse."
He also warned, "today's figures are a stark reminder, that we must return our public finances to a sustainable footing over time. This will require taking difficult decisions!" No extension of the furlough scheme towards the end of the year, The "Eat Out to help Out" scheme at a cost of £180 million to date, will not be on the menu from the end of the month. The government is keen for the return to work to continue. "protecting, supporting and creating jobs, to ensure nobody is left without hope". Oh dear, that doesn't sound good!
In the markets, Sterling closed at $1.31 against the dollar. The move above $1.32 a little too ambitious in the week. The FTSE closed down, finding support at the 6,000 level. In the US, NASDAQ pushed to a new high, assisted by Apple's all time high. Gold bears were singed a little as the test of $2,000 proved a little too much. The Bitcoin boys were baffled, as the move above $12,000 was short lived,
That's all for this week! Have a great, safe, week-end ...
The Saturday Economist
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