The UK could boost public spending to $83 billion, according to Goldman Sachs

The UK government could announce an additional 60 billion pounds ($83 billion) spending next month, using an improvement in public finances to meet regional disparity balancing commitments and reduce carbon emissions, according to the Goldman Sachs Group Inc.

The budget deficit in the first four months of the fiscal year was just over half the level of the previous year, leaving indebtedness for the entire current year well below the 10.3% of GDP the agency had forecast. . This improvement was largely due to a stronger-than-expected economic recovery which increased tax revenue.

“We hope that Prime Minister Boris Johnson and Chancellor Sunak will use this room for maneuvering, given that they have the political incentive and parliamentary support to make significant progress on the ‘settlement’ agenda,” Stephen Paul, director of Goldman at Britain’s Economist Books, said in a note.

The additional spending package is expected to include £30 billion for coronavirus-related costs and another £30 billion for areas such as skills, training, digital connectivity and the push to achieve net zero emissions by mid-century, he wrote. . Combined, this equates to about 3% of GDP.

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