UK government debt hits $2.6tn for first time

British pound.

The UK government debt has increased above 2 trillion pounds ($2.6 trillion) for the first time amid heavy spending to support the economy amid the coronavirus pandemic, the Office for National Statistics (ONS) revealed on Friday.

Spending on measures such as the furlough scheme means the debt figure now equals the value of everything the UK produces in a year, the BBC reported.

Total debt hit 2.004 trillion pounds in July, 227.6 billion pounds more than last year, said the ONS.

It is the first time debt has been above 100 per cent of the GDP since the 1960-61 financial year.

The July borrowing figure – the difference between spending and tax income – was 26.7 billion pounds, down from a revised 29.5 billion pounds in June.

It was the fourth highest borrowing in any month since records began in 1993.

The three higher figures were the previous three months.

The ONS cautioned that borrowing estimates were subject to “greater than usual uncertainty”.

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