How will Britain dig itself out of a £300bn coronavirus hole?
by Larry Elliott Economics editor from on (#53FG0)
Despite the deficit heading for a peacetime record, today's Tory party has little appetite to repeat austerity
Millions of workers in Britain have been furloughed but the UK Debt Management Office (DMO) has never been busier. The government body responsible for selling gilts - government bonds - is working flat out to cover the burgeoning gap between what the state spends and what it raises in taxes.
So far, so good, as far as the DMO is concerned. Investor appetite for gilts is healthy: the markets bought 12bn of 10-year bonds on Tuesday and another 2.25bn of 20-year bonds on Thursday.
Related: What does the biggest economic slump in 300 years mean for Britain?
Income subsidies
Continue reading...