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

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.