UK budget outlook highly uncertain as COVID cases mount-OBR

LONDON (Reuters) – Britain’s budget forecasters said the outlook for the country’s coronavirus-battered public finances remained “highly uncertain” because of a resurgence in COVID-19 cases and government restrictions to slow it.

Earlier on Tuesday, data showed Britain borrowed a record 241 billion pounds in the first eight months of the financial year and borrowing in November alone was up more than 40% from October as the government extended its job-retention scheme.

The Office for Budget Responsibility, responding to the data, said it would be many months before the full impact of the crisis on the public finances becomes clear.

The OBR has previously said the deficit is on course to widen to about 400 billion pounds in the 2020/21 year, close to 20% of GDP, double the hit from the global financial crisis.