Government borrowing drops in May but debt levels remain a 'black hole'

Still second-highest monthly borrowing on record

UK government borrowing was significantly lower in May than during the same month last year as the economy recovers from the coronavirus crisis, but remains elevated on a historical basis.

According to the Office for National Statistics (ONS), borrowing - the difference between spending and tax income - was £24.3bn during May, £19.4bn lower than the same month in 2020. However, this figure was still the second highest since records began, as the government continues to pour fiscal support into the economic system. IW Long Reads: Don't look up - should investors be scared of the global coronavirus debt mountain? Paul Craig, portfolio manager at Quilter Investors, said: "The level of borrowing may indeed have fallen on last month, but we are still well away from ‘norma...