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The national cost of Covid-19

The national cost of Covid-19

The national cost of Covid-19

Covid-19 has brought large parts of the British economy to a standstill, and the Government has had to spend and lend billions in order to support workers, businesses and the NHS. But, exactly what is the national cost of Covid-19?

Therefore, prompting questions of exactly how all of this will be repaid, and how much it will cost the nation.

While it is currently unclear how much the crisis will cost, it could be as much as £298bn for this financial year alone, according to figures released by the Office for Budget Responsibility.

To put this into context, prior to the crisis the Government were expected to borrow around £55bn.

But, crisis-related schemes to support businesses, workers and the NHS are expected to cost around £123bn.

The effects of the crisis will likely be felt in the coming years, influencing how much the Government borrows in the future.

Taxes are not expected to increase as much as the Government had previously hoped, but they will be higher.

The Government may elect to cut spending, although this may be difficult, as big cuts have already been made.

There is a limit to how much the Government is allowed to borrow, but it is unclear what that limit is.

It is most likely that the money will be repaid by the Government who will raise money by borrowing from investors.

They could be individuals, companies, pension funds, or foreign governments who lend the money to the UK government by buying bonds.

Kiera
administrator