UK borrowing at record high as coronavirus cost soars in May

Government borrowing surged to £55.2 billion in May after heavy spending to ease the coronavirus crisis.

The figures come as April’s deficit was revised down £14 billion to £48.5 billion, but it still means Britain is on course for a record increase in borrowing this financial year - reaching the highest level as a share of the economy since World War Two.

The ONS believes that borrowing in the current financial year will come in at £298.4 billion, around five times the amount borrowed last year.

The ONS stats show debt at the end of May was 100.9% of GDP, the first time that debt as a percentage of GDP has exceeded 100% since 1963.

The figures also revealed the soaring cost of financial support, such as furlough schemes.

Chancellor Rishi Sunak’s job retention scheme is set to cost the government around £84 billion before it finishes in October. While there will also be hundreds of billions of pounds spent on measures including business support loans and relief on business rates for retailers.