View all newsletters
Sign up to our newsletters

Support 110 years of independent journalism.

  1. Science & Tech
  2. Coronavirus
14 May 2020updated 04 Sep 2021 12:29pm

UK budget deficit to reach highest level since 1945, OBR says

The UK’s budget deficit is set to reach levels not seen since the end of the Second World War, according to a new scenario put forward by the Office for Budget Responsibility (OBR)

The group’s modelling suggests that net borrowing, commonly known as the budget deficit, will reach £294.8bn in 2020-21, or 15.2 per cent of GDP.

The figure is more than five times the budget deficit predicted before the UK entered lockdown. It is also higher than what the OBR forecasted last month, when it suggested net borrowing could reach 13.9 per cent of GDP.

At the peak of the financial crisis, the UK’s budget deficit reached 10.2 per cent of GDP.

The OBR also estimates the government’s grant scheme for furloughed workers, called the Coronavirus Job Retention Scheme, will cost the Treasury £56bn in gross spending, up from the £42bn forecast last month.

Lastly, its scenario said the national debt would reach 95.8 per cent of GDP, the highest since 1963. That was revised up slightly from 94.6 per cent predicted last month.

Content from our partners
Unlocking the potential of a national asset, St Pancras International
Time for Labour to turn the tide on children’s health
How can we deliver better rail journeys for customers?

Select and enter your email address Your weekly guide to the best writing on ideas, politics, books and culture every Saturday. The best way to sign up for The Saturday Read is via saturdayread.substack.com The New Statesman's quick and essential guide to the news and politics of the day. The best way to sign up for Morning Call is via morningcall.substack.com Our Thursday ideas newsletter, delving into philosophy, criticism, and intellectual history. The best way to sign up for The Salvo is via thesalvo.substack.com Stay up to date with NS events, subscription offers & updates. Weekly analysis of the shift to a new economy from the New Statesman's Spotlight on Policy team. The best way to sign up for The Green Transition is via spotlightonpolicy.substack.com
  • Administration / Office
  • Arts and Culture
  • Board Member
  • Business / Corporate Services
  • Client / Customer Services
  • Communications
  • Construction, Works, Engineering
  • Education, Curriculum and Teaching
  • Environment, Conservation and NRM
  • Facility / Grounds Management and Maintenance
  • Finance Management
  • Health - Medical and Nursing Management
  • HR, Training and Organisational Development
  • Information and Communications Technology
  • Information Services, Statistics, Records, Archives
  • Infrastructure Management - Transport, Utilities
  • Legal Officers and Practitioners
  • Librarians and Library Management
  • Management
  • Marketing
  • OH&S, Risk Management
  • Operations Management
  • Planning, Policy, Strategy
  • Printing, Design, Publishing, Web
  • Projects, Programs and Advisors
  • Property, Assets and Fleet Management
  • Public Relations and Media
  • Purchasing and Procurement
  • Quality Management
  • Science and Technical Research and Development
  • Security and Law Enforcement
  • Service Delivery
  • Sport and Recreation
  • Travel, Accommodation, Tourism
  • Wellbeing, Community / Social Services
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
THANK YOU