The Office for National Statistics’(ONS) March public sector finances, released recently, reported that while government borrowing for 2021-22 has declined compared to the same period last year (2020-21) it’s also the third-highest figure since records began in March 1947, indicating just how much rising inflation is impacting the public finances. 

To get into the numbers, public sector net borrowing for 2021-22 stood at £151.8bn while borrowing for 2020-21 was over double that at £317.6 bn. This year’s figure is naturally lower in comparison to last year’s when the coronavirus pandemic was at its peak, which saw the UK Government spend billions on measures like the self-employment income support scheme and NHS test and trace.