Tuesday 22 June 2021 7:17 am

UK Government borrows another £24.3bn in May as debt approaches 100 per cent of GDP

Lack of scrutiny within Covid-19 loan schemes has “significantly increased” taxpayer exposure to fraud and error, warns Public Accounts Committee

The UK borrowed £24.3bn in May despite the gradual winding down of lockdown restrictions, according to the latest official estimates.

The Office for National Statistics also confirmed this morning that the UK’s debt hit £2.19trn at the end of last month, representing around 99.2 per cent of GDP.

That is the highest ratio since March 1962.

The successful rollout of Covid-19 vaccines across the country has not necessarily presaged the economic boom many had hoped.

The Government’s cautious reopening to lockdown has meant a number of schemes, including the costly furlough program, have continued into the summer.

The May borrowing figure represents the second-highest May since monthly records began in 1993, only beaten by last year’s.

The UK’s borrowing in the year to March 2021 was revised down by £1.1bn to £299.2bn, the highest annual borrowing figure since World War 2.

Chancellor of the Exchequer Rishi Sunak said: “As we emerge from the pandemic, we are continuing to support people and businesses to get back on their feet and our Plan for Jobs is working.

“It’s also important over the medium term to get the public finances on a sustainable footing. That’s why at the Budget in March I set out the difficult but necessary steps we are taking to keep debt under control in the years to come.”