TLTP
LONDON
British public sector borrowing climbed to a record £214.9 billion ($284.89bn) in the first seven months of the fiscal year, as UK finance minister Rishi Sunak plans to announce a squeeze on public sector pay to help bring government spending under control.
The UK government borrowed £22.3bn in October alone, £10.8bn more than the same month a year ago, putting Britain on track for a deficit of £372.2bn by the end of March, according to data from the Office for National Statistics (ONS).
Meanwhile, retail sales rose 1.2 per cent in October on the month, the sixth monthly increase in a row, which took sales 6.8 per cent above their pre-crisis level.
Sunak said the government has provided more than £200bn of support to protect the economy and people’s livelihoods “from the significant and far reaching impacts of coronavirus”.
“This is the responsible thing to do, but it’s also clear that over time it’s right we ensure the public finances are put on a sustainable path,” Sunak said.
Sunak will set out his spending review next week, giving details of how much money will be allocated to different departments, with analysts expecting him to make the case for pay restraints on public sector earnings.
A three-year pay freeze could save the government £23bn by 2023, or £15bn if National Health Service workers are not included, according to a report from the Centre for Policy Studies.
The UK’s borrowing figures so far this fiscal year are now £169.1bn more than in the same period last year and the highest public sector borrowing in any April to October period since records began in 1993.
This puts public debt as a share of gross domestic product at 100.8 per cent, however stronger growth in the economy in the third quarter meant this was down slightly from September’s peak of 101.2 per cent, the highest level since the early 1960s.
