Borrowing jumps to record levels amid more pandemic restrictions

Britain has its highest debt-to-GDP ratio since viewers were enjoying the early days of Coronation Street
Britain has its highest debt-to-GDP ratio since viewers were enjoying the early days of Coronation Street
GERRY CROWTHER/DAILY MIRROR/MIRRORPIX/GETTY

Government borrowing rose to the highest level for December on record as Britain was hit by a new wave of coronavirus restrictions.

The deficit grew by another £34 billion, up from November’s £30.8 billion and above economists’ forecasts of £32.2 billion, according to the Office for National Statistics. Last month’s borrowing figure was the third highest since records began in 1993.

The rise was driven by a 26.1 per cent increase in government expenditure during the year to December. Central government bodies spent £91.7 billion in December, £28.1 billion more than they did in December 2019. This was related largely to the coronavirus job retention scheme and the self-employment income support scheme.

However, tax receipts were down by only £1.4 billion, or 1.2 per cent,