Coronavirus pandemic pushes UK borrowing to unprecedented levels

The UK’s budget deficit will reach as high as £260bn, due to the current coronavirus pandemic which has devasted the economy.

Latest figures from the Office for National Statistics (ONS) showed that the deficit – the gap between the government’s income and its expenditure – hit £48.7bn in the 2019-20 financial year. The deficit last year was £9.3bn higher than in the 2018-19 financial year.

ONS, which released those figures, revealed that they did not capture the large projects to counter the impact of coronavirus on the business community.

“The full effects of COVID-19 on the public finances will become clearer in the coming months,” said ONS.

“This means that some of the statistics included in this release will be prone to larger revisions than normal, once more data become available.”