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The work of the last ten years in bringing borrowing and debt back under control has
ensured that the public finances are well placed to deal with the challenges posed
by COVID-19. However, it is clear that the impact of COVID-19 on the economy and the
government's necessary response to it will lead to an increase in borrowing and debt
this year.<p>The government has provided a comprehensive policy package to do whatever
it takes to support businesses, households and our vital public services through this
difficult period. Not taking these steps would result in the temporary effects of
COVID-19 permanently damaging our economy, which would weaken the fiscal position
over the longer-term; as the independent Office for Budget Responsibility have said,
“the costs of inaction would certainly have been higher.”</p>
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