How does the government borrow £400 billion?

Isabel Stockton

Published on 22 February 2021

Isabel Stockton explains the process behind government borrowing, and assess the long-term impact.

In 2020, as the government responded to the coronavirus crisis, it borrowed about £400 billion more than it collected in revenue. How does the government borrow large sums of money? Where does it come from? What are the risks?

Authors

Isabel Stockton

Isabel Stockton

Senior Research Economist

Isabel works in the Healthcare sector, and on the public finances. Their research focuses on retaining and developing the NHS workforce.