Support 100 years of independent journalism.

  1. Science & Tech
  2. Coronavirus
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.

Sign up for The New Statesman’s newsletters Tick the boxes of the newsletters you would like to receive. Quick and essential guide to domestic and global politics from the New Statesman's politics team. The New Statesman’s global affairs newsletter, every Monday and Friday. The best of the New Statesman, delivered to your inbox every weekday morning. A handy, three-minute glance at the week ahead in companies, markets, regulation and investment, landing in your inbox every Monday morning. Our weekly culture newsletter – from books and art to pop culture and memes – sent every Friday. A weekly round-up of some of the best articles featured in the most recent issue of the New Statesman, sent each Saturday. A weekly dig into the New Statesman’s archive of over 100 years of stellar and influential journalism, sent each Wednesday. Sign up to receive information regarding NS events, subscription offers & product updates.
I consent to New Statesman Media Group collecting my details provided via this form in accordance with the Privacy Policy