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30 April 2020updated 06 Oct 2020 9:45am

Government will need to borrow £105bn, around 5 per cent of GDP, to pay for coronavirus policies, OBR says

By Samuel Horti

The cost of government policies designed to limit the economic damage of the coronavirus pandemic is nearing £105bn, around 5 per cent of UK GBP, the Office for Budget Responsibility (OBR) has said.

The OBR’s “initial broad-brush estimate” covers the series of grants, loans and guarantees the government has handed out during the pandemic. 

The direct of those policies on cash borrowing in 2020-21 would be £103.7bn, the OBR said. £99.3bn is attributed to spending commitments, and £4.4bn to tax changes.

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