Government borrowing in May hits highest since Covid | EUROtoday

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Government borrowing in May hit the very best because the Covid disaster however was decrease than the UK’s fiscal watchdog had forecast.

Borrowing reached £15bn final month, which was £800m larger than May final 12 months.

It implies that the general public sector spent greater than it obtained in taxes and different earnings, main the federal government to borrow billions of kilos.

It is the third highest determine for May since data started in 1993, surpassed solely by the pandemic years.

However, borrowing was £600m lower than the Office for Budget Responsibility (OBR) had anticipated.

With the overall election quick approaching, whichever occasion wins will face related challenges on tax, spending and debt, economists have warned.

“Government borrowing holds steady but the fiscal Pandora’s box awaits for the next chancellor”, stated Michal Stelmach, senior economist at KPMG UK.

“Interest rates are set to remain higher, debt more difficult to bring down, and spending pressures continue to mount.”