As the Omicron and Covid variants of today’s economic downturns hammer the economy, it was clear that the state of the nation’s public finances is in dire straits.
Government borrowing came in above expectations at £17.4billion – only £4.9billion below last year and the second highest on record.
Meanwhile, the country’s debt pile had reached £2.32trillion by the end of the month – equivalent to 96.1 per cent of GDP, the worst ratio since 1963.
This grim picture is amidst mounting concerns that the virus’ reemergence could impede recovery.
Government borrowing came in above expectations at £17.4billion – only £4.9billion below last year and the second highest on record
Alarmingly, inflation continues to rise and the Bank of England is forced to increase interest rates. This raises the possibility of “stagflation”.
For the first time this year borrowing was higher than the estimates produced by the Office for Budget Responsibility, which had pencilled in a figure of £14.2billion for November.
Paul Johnson (director of respect IFS think tank) stated that Rishi Sunak was worried about how support might be targeted and while Treasury had the ability to borrow, this morning.
Boris Johnson retreated last night from the imposition of punitive lockdown restrictions that would have destroyed Christmas.
Yesterday’s lengthy Cabinet meeting saw several ministers, including the Chancellor, demand ‘incontrovertible proof’ regarding the Omicron variant.
According to Cabinet sources, it seemed almost certain that new restrictions wouldn’t be introduced prior to December 25.
But fears are growing that after Christmas different households could be banned from socialising indoors – and pubs and restaurants forced to serve outside – spoiling New Year for millions of families.
Johnson warned last night that he must’reserve’ the right to place further restrictions on Omicron’s spread, despite plans to conduct a two-week circuit breaker. He admitted however that the data wasn’t clear enough for him to take any immediate actions.