Budget deficit reaches £174 billion in just five months

Less than halfway through the 2020-21 fiscal year, the budget deficit has already topped full-year borrowing in 2009-10 (at the peak of the financial crisis). Despite that, year-to-date borrowing is lower than assumed in the central scenario from our Fiscal sustainability report, as both GDP and tax receipts have fared less badly than assumed. With the virus taking hold again and the Chancellor announcing new support measures, prospects for the rest of the year remain highly uncertain.