UK to sell record £485bn of debt in 2020-21

The UK Debt Management Office (DMO) has announced the UK government will sell a further £92 billion of bonds over the next four months.

The increase will take total sales of such debt securities for the financial year to a record £485.5 billion.

For 2021-22, the UK government’s gross financing requirement is likely to be £255.9 billion, based on new spending forecasts from finance minister Rishi Sunak, the DMO said. 

The £485.5 billion is more than twice the amount the UK raised during the peak of the global financial crisis, according to Bloomberg.

The UK’s Office for Budget Responsibility said: “The coronavirus pandemic has delivered the largest peacetime shock to the global economy on record. 

“It has required the imposition of severe restrictions on economic and social life; driven unprecedented falls in national income; fuelled rises in public deficits and debt surpassed only in wartime; and created considerable uncertainty about the future. 

“The UK economy has been hit relatively hard by the virus and by the public health restrictions required to control it …

“The virus has also exacted a heavy and mounting toll on the public finances. 

“In our central forecast, receipts this year are set to be £57 billion lower, and spending £281 billion higher, than last year.”

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Mark McSherry
Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.