UK public sector debt surpasses £ 2 trillion for the first time in history as ministers borrowed £ 27 billion in July alone over the coronavirus crisis
- Statistics show that public sector debt topped £ 2 trillion for the first time
- The Bureau of National Statistics said borrowing was just under £ 30 billion in July
- Chancellor Rishi Sunak said the coronavirus had "severely burdened" British plc.
- After one in ten companies said they were exposed to a "moderate" risk of bankruptcy
Public sector debt rose to over £ 2 trillion for the first time in history as the government was forced to borrow cash to keep UK plc alive during the coronavirus crisis.
According to the latest data released by the Bureau of National Statistics, ministers borrowed £ 26.7 billion in July alone.
Borrowing last month was £ 28.3 billion more than at the same time last year, according to the ONS.
It's also the fourth highest since records began in 1993 as the government continues to throw billions of pounds on the economy to try to rebound it.
Chancellor Rishi Sunak said the coronavirus crisis had put "a significant strain" on UK finances.
The Bureau of National Statistics announced today that public sector debt has exceeded £ 2 trillion for the first time
Debt, expressed as a percentage of GDP, is now at the level last seen in the UK in the 1960s
The ONS data showed that public sector debt is now valued at £ 2.004 trillion.
This is the first time the number has ever been seen to surpass £ 2 trillion, and about £ 227.6 billion more than a year ago.
According to a consensus from Pantheon Macroeconomics, analysts had forecast borrowing to reach £ 28.6 billion in June.
The end of July was the first time since 1961 that Britain's debt was 100.5 percent more than GDP, according to the ONS.
Chancellor Rishi Sunak said, “This crisis has put a significant strain on public finances as we have seen a blow to our economy and taken steps to support millions of jobs, businesses and livelihoods.
“Without this support it would have been a lot worse.
“Today's numbers are a clear reminder that over time we will have to put our public finances back on a sustainable footing, which will require difficult decisions.
"That is why we are now taking action to support the growth and jobs that are paid for our public services, by helping companies reopen safely and, through our Workplace Plan, protect, support and create jobs to ensure that no one remains hope without them. & # 39;
However, the latest figures include a health warning as official public sector borrowing and debt figures have been unusually inaccurate in recent months due to the volatility caused by the coronavirus crisis.
A few weeks ago, the ONS cut borrowing by £ 6bn to £ 29.5bn in June as tax and social security contributions rose faster than expected.
The new loan numbers came after ONS data showed one in eight workers is still on vacation before the government's job-retention program ends.
The ONS announced that its latest 14-day survey of the impact of coronavirus on UK businesses found that 12 percent of the total workforce is still on vacation.
Mr. Sunak has announced that the program will complete in late October and support will be reduced from next month.
One in ten British companies now states that they are at risk of bankruptcy due to the coronavirus crisis. 40 percent admit that they have cash reserves of less than six months at the bank.
The latest company survey by the Office for National Statistics found that one in ten companies has a “moderate” risk of bankruptcy
According to the ONS, around 12 percent of the workforce is still on vacation
About 10 percent of companies have estimated that they have a "moderate" risk of not being able to pay their bills in the near future.
Only one percent of companies said their risk of bankruptcy was "severe", but almost half of all companies – 45 percent – said they had at least a low risk of bankruptcy.
Almost a third (32 percent) stated that there was no risk of bankruptcy.
Around 41 percent of companies now have cash reserves worth less than six months, while four percent say they have no cash reserves.
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