The Office for National Statistics (ONS) released data for UK Public sector finances October 2020.

The data indicates that Public sector net borrowing (excluding public sector banks, PSNB ex) is estimated to have been £22.3 billion in October 2020.

The ONS stated that is “£10.8 billion more than in October 2019, which is both the highest October borrowing and the sixth-highest borrowing in any month since monthly records began in 1993” for for UK Public sector finances.

UK Public Sector Net Borrowing OCT: £22.3 billion

The UK Public Sector Net Borrowing shows the relationship between UK public sector monthly income and expenditure.

Central government bodies are estimated to have spent £71.3 billion on day-to-day activities (current expenditure) in October 2020, £6.4 billion more than in October 2019; this growth includes £1.3 billion in Coronavirus Job Retention Scheme (CJRS) and £0.3 billion in Self Employment Income Support Scheme (SEISS) payments.

Public sector net borrowing (PSNB ex) in the first seven months of this financial year (April to October 2020) is estimated to have been £214.9 billion, £169.1 billion more than in the same period last year and the highest public sector borrowing in any April to October period since records began in 1993.

Debt to GDP ratios levels last seen 1960’s

Public sector net debt excluding public sector banks (PSND ex) rose by £276.3 billion in the first seven months of the financial year to reach £2,076.8 billion at the end of October 2020, or around 100.8% of gross domestic product (GDP); debt to GDP ratios in recent months have reached levels last seen in the early 1960s.

General government net borrowing in the first seven months of this financial year (April to October 2020) is estimated to have been around 9.9% GDP.

The impact of the coronavirus on the public finances

The coronavirus (COVID-19) pandemic has had a substantial impact on public sector borrowing. Official OBR estimates (XLS, 201KB) published on 21 August 2020 indicate that the £214.9 billion borrowed by the public sector in the financial year-to-October 2020 could reach £372.2 billion by the end of March 2021.

Central government tax and national insurance receipts (combined) in the seven months-to-October 2020 fell by £38.3 billion (or 9.7%) compared with the same period in 2019, while government support for individuals and businesses during the pandemic contributed to an increase of £123.5 billion (or 28.5%) in central government day-to-day (or current) spending.

The extra funding required to support government coronavirus support schemes combined with reduced cash receipts and a fall in gross domestic product (GDP) have all helped push public sector net debt as a ratio of GDP to levels last seen in the early 1960s.

Source: ONS

Contains public sector information licensed under the Open Government Licence v3.0.