In late 2020, Rishi Sunak addressed Government spending, examining it’s sustainability in Parliament: The economic impact of coronavirus, and the action we’ve taken in response, means there has been a significant but necessary increase in our borrowing and debt.
“The UK is forecast to borrow a total of £394 billion this year, equivalent to 19 percent of GDP.
“The highest recorded level of borrowing in our peacetime history.
“Borrowing falls to £164 billion next year, £105 billion in 2022-23, then remains at around £100 billion, four percent of GDP, for the remainder of the forecast.
“Underlying debt – after removing the temporary effect of the Bank of England’s asset purchases – is forecast to be 91.9 percent of GDP this year.
“And due to elevated borrowing levels, and a forecast persistent deficit, underlying debt is forecast to continue rising in every year, reaching 97.5 percent of GDP in 2025-26.