Public sector net borrowing records second highest September ever
The UK public sector net borrowing (PSNB) was £21.8bn in September 2021, the second highest September borrowing since monthly records began in 1993 and only £7bn short compared with September last year.
Comparing financial years to September, data from the Office of National Statistics (ONS) also highlighted that PSNB in September 2021 came in second with £108.1bn and was only surpassed by the previous financial year by £101.2bn.
The public sector’s net debt excluding public sector banks amounted to £2.2tn at the end of last month, around 95.5 per cent of the country’s gross domestic product, maintaining a level that hasn’t been seen since the early 1960s.
According to the ONS, the Covid-19 pandemic had the biggest impact on the public sector’s borrowing and its consequent debt. The government support for individual and business played a huge part in the high expenditure, as it contributed to an increase of £204.4bn in its day-to-day spending.
Provisional estimates indicated that the public sector borrowed £319.9bn in FYE2021, the equivalent of 14 per cent of gross domestic product and the highest ration since the end of World War Two.
Commenting on the data, Chancellor Rishi Sunak said: “Our recovery is well underway – with more employees on payrolls than ever before and the fastest forecast growth in the G7 this year – but the pandemic has had a huge impact on our economy and caused our debt levels to rise.
“At the budget and spending review next week I will set out how we will continue to support public services, businesses and jobs while keeping our public finances fit for the future.”