UK set to raise £530bn debt this year as cost of the pandemic spirals

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Government on track to raise £530bn debt this year as cost of the pandemic spirals

The Debt Management Office said it plans to sell Government bonds, or gilts, worth £385bn, between April and November

The Government is on track to raise more than half a trillion pounds in debt this year as the cost of the pandemic spirals.

The Debt Management Office (DMO) said it plans to sell Government bonds, or gilts, worth £385billion, between April and November, up from the £275billion it had previously pencilled in for April to August.

If the DMO carries on raising money at the same rate for the rest of the financial year, through to March, it will have issued around £530billion over the 12-month period.

Martin Beck, lead UK economist at Oxford Economics, said the numbers were ‘startlingly high’.

He added: ‘One way of putting it is that gilt sales between April and November alone will be as much as governments borrowed over the previous six years.’

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