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UK Enters Record Breaking Recession: ‘You Ain’t Seen Nothing Yet’, Analyst Says

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Official figures have confirmed that the UK has been tipped into the “largest recession on record”.
The figures released by Office for National Statistics (ONS) report that Britain’s economy shrank by 20.4 per cent in the second quarter of the year, worse than any other G7 nation, taking the country into its first recession since the 2008-2009 financial crisis. Analyst Marcus Stead has shared his views on the matter. That figure, over just three months, was more than double £55.4 billion borrowed in the whole of the previous tax year. Borrowing in June was lower than in May at £35.5 billion but even so June’s borrowing figure was still the third highest monthly total since records began in 1993, and about five times as the same month last year. Now total government debt is close to £2 trillion, or to put it another way, the debt of the UK government at the end of May 2020 was 100.9% of gross domestic product; the first time that debt as a percentage of GDP has exceeded 100%, since the financial year ending in March 1963. The sheer scale of the problems facing the country’s economy will become clear in the autumn and Chancellor Rishi Sunak won’t have any easy solutions. It will likely be paid for by tax rises and cuts to public expenditure and people will need to be prepared for that.

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