Biggest borrowing since WW2

Get straight to the good stuff every day with the Multiply Minute; a lightning-quick round-up of the money news and how it affects you.

Coronavirus bill

The government has spent £123.2 billion so far to tackle coronavirus and its economic impact. Annual borrowing is expected to hit 15.2% of GDP to cover the cost; the highest since WW2. Paul Dales, chief UK economist at Capital Economics, described the spending as “good news” for people in the short term, but explains: “We will have to pay for it, either by taxes going up or by spending being cut.”

Homebuyers have to wait

Would-be homebuyers who are trying to get their plans back on track this week are facing new delays to getting a mortgage*. Why? Valuations are a key part of the mortgage approval process, and after weeks of shutdown many banks are warning it could take weeks for property surveyors to clear the backlog. Until they do, many lenders are closed to applications from new customers.

Tube bailout

Transport for London (TfL) has agreed a £1.6 billion government bailout to keep the lights on and the trains running. Other public transport operators around the country have received similar funding in recent months. TfL had warned that it was about to run out of cash, having taken a 95% hit in the money collected from tube fares during lockdown.

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