
The era of big state spending is here to stay
Lockdown ended, the economy reopened – and public sector borrowing went up. Provisional figures for 2022/23 released by the Office for National Statistics (ONS) this morning show that the government borrowed £139.2 billion. This is an increase of £18.1 billion on the previous year, when the economy was still being disrupted by Covid. The figure was made much worse by figures for March this year, when the government borrowed £21.5 billion – £16.3 billion more than in March 2022. A huge surge in borrowing during the pandemic was to be expected. The government was, after all, paying the wages of 9 million people at one stage through the furlough scheme.
