We are likely to borrow c.£300bn in 2020/21 on top of the current c. £1.8trn that we already owe. The huge cost of the Covid-19 measures will initially be met by borrowing, but what more can be done to repay this debt?
The public sector net borrowing requirement (PSNBR) in April 2020 is estimated to be the highest borrowing in any month since records began in January 1993. These numbers show the first impact of Covid-19 on the Government’s finances. So What is the cost likely to be? and how will the government pay for it?