The UK government deficit reached a peacetime record of some £ 241 billion in the first eight months of the financial year. The British spent billions on helping businesses and households get through the crisis.
Experts point out that the economy may end up in a recession, which will not make the recovery of the household book any more comfortable. In November alone, the UK government spent nearly £ 32 billion more than it came in through taxes.
The British economy rebounded strongly in the third quarter, according to figures from the national statistics office. But a muscular contraction is expected for the current fourth quarter, also because of the stringent measures that are being taken to stem the spread of a mutated and highly contagious variant of the coronavirus.
On top of this comes Brexit, which makes the divorce talks between the United Kingdom and the European Union very difficult.
Treasury Secretary Rishi Sunak and the British central bank are under severe pressure from the multiple risks to the economy to increase monetary support packages further.
In addition, some economists now also anticipate that the British economy will contract in the first quarter. That was not stated so clearly in the most recent predictions of the policymakers.