The government’s package of tax cuts aimed at boosting economic activity are unlikely to stimulate enough growth to pay for themselves, and could lead to future tax rises or spending cuts, economists...
The government’s plan to temporarily cap energy bills for households and businesses will likely lead to higher borrowing and increased pressure on public finances, experts have said.
Ministers have been called to temporarily relax the borrowing rules for local authorities to cover-day-day spending, according to a report from the Institute of Fiscal Studies.
Public sector borrowing hit a record £62.1bn in April 2020, during the first full month of Covid-19 lockdown measures, according to the Office for National Statistics.
The Office for Budget Responsibility has predicted UK GDP could fall by as much as 35% in the second quarter of this year, due to the coronavirus outbreak.
Public sector borrowing for August decreased by £0.9bn to £10.5bn compared with the same month last year, according to the Office for National Statistics.
The UK public sector received more in taxes and other income than it spent to record a surplus of £1bn in July, according to official figures released today.
