The Covid-19 bill means the Treasury must live with high borrowing
The government has borrowed more in April than expected for the whole year. It can't be paid back via austerity
It was inevitable that borrowing would hit a peacetime record this year. In April alone, the government borrowed more in a single month than was expected for the whole year before the coronavirus pandemic struck.
According to the first official Covid-19 cost estimates, the government borrowed 62bn in April, more than at any time since comparable records began in 1993. Not even the depths of the 2008 financial crisis come close.
Related: UK government borrowing hits record high in April and retail sales slump - business live
The deficit is the shortfall between government income and spending as measured each month by the Office for National Statistics. Tax receipts make up the vast majority of income, while spending on welfare, schools, healthcare and pensions make up most of its outgoings.
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