Public sector borrowing as a result of the coronavirus lockdown is set to hit a record 14% of GDP this year but then decline rapidly to the levels predicted in the March Budget, according to the Office for Budget Responsibility.

The OBR says borrowing as a result of the virus could hit £218bn this year, making total borrowing £273bn or 14% of GDP, the largest deficit in a single year since the Second World War and almost half as much again as the 10% deficit in 2010. Once the crisis has passed and ‘the policy interventions’ have unwound the deficit will then fall back to the Budget forecast of around 2% of GDP.