Debt will soar: the government must just stay cool and focus on growth
by Guardian Staff from on (#53JG7)
Some in the Treasury are panicking about a debt pile set to hit 115% of GDP, but the chancellor - and most economists - agree that austerity is not the answer
Britain is on course for a 300bn increase in government debt this year as the bills for keeping much of the economy mothballed during the coronavirus outbreak continue to mount.
Money to support businesses that have closed down make up the lion's share, and the rest can be accounted for by increased welfare costs and the loss of billions of pounds to the exchequer in taxes that will never be paid.
Even the architects of austerity agree almost-zero borrowing costs and low inflation give the Treasury an opportunity
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