Market comment

Boris Johnson faces difficult choices on public finances


UK public sector borrowing was £22bn in October, better than expected but still an eye-watering 1% of GDP and will deteriorate as COVID-19 restrictions are tightened. Facing a deficit close to 20% of GDP this year, reports indicate that Rishi Sunak will announce a public sector pay freeze as part of next week’s spending review. This will pose difficult choices for Boris Johnson given poor growth prospects and perhaps undermining his ‘levelling up’ agenda.

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Nov 20 2020, 07:55 GMT