Think-tank voices fears over gloomy fiscal outlook

By Michael Burton | 16 April 2020

Recent forecasts by the official spending watchdog of a swift return to normality for the economy and the public finances after the coronavirus lockdown have been downplayed by a new think-tank study.

The Resolution Foundation in a report today (April 16) predicts the impact on the public finances of three scenarios in which the virus lockdown lasts three months, six months or 12 months.

A three month lockdown would push the deficit to a record 11% of GDP, higher than the peak of the financial crisis, a six-month period would push it to 21% of GDP and a 12-month lockdown would require the Government to borrow 38% of GDP in 2020, more than the UK has borrowed in any single year in its history.

Want full article access?


Receive The MJ magazine each week and gain access to all the content on this website with a subscription.

Full website content includes additional, exclusive commentary and analysis on the issues affecting local government.

`

Already a subscriber? Login

Finance Coronavirus
Top

Coronavirus Update

x

In light of the ongoing coronavirus crisis, some of you may not be able to receive your copy of TheMJ magazine. If you’d like to change your delivery address, please contact our subscriptions department at customer@hgluk.com
Read The MJ for free

OR
Keep up to date by subscribing to our daily newsletter

theMJ products