Chris Williamson

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Britain's budget deficit is set to not see "seen an absolutely colossal increase to A Level , in times of peace," says The Director of The Institute for Fiscal Studies said.

the economic impact of The coronavirus was probably push, said the deficit as high as £260bn, Paul Johnson of The Bbc .

He was speaking after the latest figures showed That the deficit Hit £48. 7 billion in the 2019-20 fiscal Year .

But Mr Johnson said the numbers Are the numbers before The Storm were"".

The deficit in the past Year - The Gap between the revenue and its expenditure was £9. 3 billion higher than in the 2018-19 financial Year and is equivalent to 2. 2% of GDP.

The Office for National statistics published the figures said That they announced not to catch the large expenditures to cope with by the government, with The Virus .

"The coronavirus (Covid-19) pandemic is expected to have a significant impact on the UK's public finances," it added.

"These effects arise both from the introduction of Public Health measures and the new policy of the government to support businesses and individuals. "

tax increases

The ONS said the full effect of coronavirus on The Public finances would have become clear That in The Coming months.

Mr Johnson told The Bbc 's Today programme That there was still "a tremendous amount of uncertainty, the economic impact of The Virus .

However, announced by the government, tax cuts and spending increases Worth £100bn, so the effect was "likely to dwarf the record, we saw during the financial crisis".

Mr. Johnson said the economy was unlikely to recover quickly, after That and want to stay "smaller than it would otherwise have been". He added That tax increases and a growing deficit, the expected results were.

"I would be surprised if in a few years the economy was back where he would have been, if it [The Virus ] had Never Happened before," He Said .

has given meanwhile, a closely watched study of British companies, the economic impact worse than feared.

The Ihs Markit /CIPS-the flash-the UK composite purchasing managers' index (PMI) measures the activity in the service and the manufacturing sector fell to a new record low of 12. 9 in April, down from 36 in March.

Any value below 50 shows a contraction. Economists by Reuters surveyed the figure of 31 was expecting. 4.

"The disastrous survey of the values, inevitably, questions About the cost of the suspension and how long the current restrictions will last," said Chris Williamson , chief business economist at IHS, Markit, adding That the figures showed a quarter-on-quarter, the economic contraction of at least 7%.

money

In another development, the Ministry of Finance has announced That it is accelerating its plans to raise money to cover the cost of the coronavirus-measures.

It is now provided for the exhibition of £180bn Worth of government bonds, known as gilts, in the may-July period, More Than was originally in these months.

We already knew the government was likely to borrow huge sums of money to support the economy. But now it is not a "scenario" from The Office of Budget responsibility, but a practical reality.

This Morning , The Debt Management Office , The Arm of the Treasury who borrows on the international money markets on behalf of the government, announced, how much the government is actually borrowing the planning. That 's £45bn in April alone and a Further £180bn from the beginning of may until The End of July - a total of £225bn in just four months.

One reason is the huge costs for programs such as furloughing, now costs to Euro-North of £50 billion. The Other reason is That the government collapses, the receipts, the taxes That it collects on Income Tax , VAT and social security - Are . If you shut down much of the economy, you can also turn the faucet on much of the government's tax revenue.

The OBR, the scenario was That the government might need to borrow £382bn for the Year - About seven times as high, what to expect pre-Covid. That depends, though, on the shutdown will be canceled sooner rather than later.

The Resolution Foundation estimates That if the shutdown it will be Even Higher for the Year - a truly continued for six months, the borrowing mind-boggling £500bn. This is About a quarter of the size of the economy as a whole.

"The temporary and immediate nature of the unprecedented level of support announced for people and companies with the government expected That a significantly higher proportion of the total instead of gold plated sale in 2020-21 in The First four months of the fiscal Year , the immediate financing needs, said from Covid-19," the treasure chamber.

"a higher volume of emissions is not expected to be required over The Remainder of the Year . "

office for national statistics, uk economy, coronavirus pandemic, institute for fiscal studies

Source of news: bbc.com