UK borrowing at record high as virus cost soars
Government borrowing surged dramatically to £62 billion in April 2020 according to data released by the Office for National Statistics, was the highest monthly borrowing on record, as a result of substantial government intervention to help ease the coronavirus crisis.
The deficit, that’s the difference between spending and tax income – was larger last month than forecast for the whole year at the time of the Budget.
The data from the Office for National Statistics revealed the soaring cost of support, such as the furlough scheme where the UK government attempts to hold and protect UK jobs.
The Office for National Statistics, described April’s figure as ‘pretty much unprecedented’. It said the cost of furlough schemes alone was £14 billion in April 2020.
Less spending more taxes
The UK government will need to recover this spending spree and that usually means increased taxes or reduced spending, so more austerity for the UK people? Or, is there an argument for the world coronavirus debt to be cleared. The slate wiped clean?
Retail sales plummet in April as lockdown hits the shops
The Office for National Statistics said that the amount of goods sold in the UK fell by 18.1%.
Online shopping in contrast recorded a record high of 30.7%, according to the Office for National Statistics.
All types of retail, other than clothing or household items, saw record amounts being spent online.
But online shopping failed to offset the dramatic fall in High Street spending. No real surprise there as the high street was shut.
Other market news
China is reported to have said that it will honour the U.S. – China phase one trade agreement as trade tensions continue to simmer.
China is reported to have imposed security controls over Hong Kong. HK stocks fall on this news.
It is also reported that China drops GDP target due to the coronavirus damaging the economy.
Oxford University and AstraZeneca Plc are reported to be recruiting more than 10,000 volunteers for the next stage in development of one of the fastest moving experimental Covid-19 vaccines in the world.
Roche antibody test can be completed in 20 minutes it is reported, and to be made available on the NHS.
Nvidia data centre sales break through $1 billion for the first time. it has been reported.
Companies in U.S. likely to borrow at the fastest pace ever, $1 trillion in 2020 it is has been reported.
Mortgage rates in the U.S. are reported to be at record lows. House sales held back by the coronavirus.