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UK borrowing soars, retail sales plunge as Covid-19 hits economy

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(stock photo)

(stock photo)

Alex Dodd

(stock photo)

Britain's government borrowed more than it has done in any month on record in April, pushing up a measure of public debt to close to 100pc of economic output, and retail sales fell by a record 18pc as the coronavirus crisis hammered the economy.

April's borrowing at £62.1bn was six times higher than in the same month last year and March's figure was revised up sharply to nearly £15bn as the government's emergency job retention scheme kicked in.

Public debt, including the Bank of England's massive bond-buying, jumped to nearly 98pc of gross domestic product, reflecting higher borrowing and a lower estimate of the size of the economy based on a scenario by Britain's budget forecasters.

That was the highest share of GDP by that measure since 1963, the Office for National Statistics said.

The ONS also said British retail sales fell by the most on record in April as much of the sector was shuttered by the government's coronavirus lockdown.

Sales volumes fell 18.1pc in April from March, a slightly bigger fall than a median forecast for a drop of 16pc in a Reuters poll of economists.

Reuters