ICAEW Fiscal Insight: Coronavirus and the public finances

28 May 2020: ICAEW has today published a Fiscal Insight on coronavirus and the public finances, setting out how a huge economic shock combined with unprecedented fiscal interventions are driving a global and UK fiscal crisis.

The Fiscal Insight describes how the global economy is experiencing a major recession with severe consequences for public finances around the world. Whole sectors of the economy have been closed down, while governments have borrowed heavily to finance large-scale fiscal interventions in order to mitigate the damage.

In the UK, there has been a dramatic transformation in the fiscal position with public spending expected to exceed £1tn for the first time, with a fiscal deficit approaching £300bn and net debt rising from £1.8tn to in excess of £2.2tn.

Rebuilding the public finances will be challenging, with sustainable public investment key to driving the economic recovery and a long-term fiscal strategy essential to repairing public finances.

ICAEW Fiscal Insight cover page. Click on image or link to reach the contents.

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