Thread by @BBCPolitics

Total UK government debt has exceeded £2 trillion for the first time ever

At the end of July, debt was £2.004tn, £227.6bn more than at the same point last year, the Office for National Statistics says

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This is 100.5% of GDP, the first time it has been above 100% since the 1960-61 financial year, the ONS report

The government borrowed £26.7bn in July, down from a revised £29.5bn in June, as the coronavirus pandemic impacted on public finances

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The July figure (the difference between spending and tax income) was the fourth highest borrowing in any month since records began in 1993

The three higher figures were the previous three months

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So why does the government borrow money?

The government borrows because it spends more than it receives in revenue, which comes mainly from taxes

Currently government income is down because people are earning and spending less

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How much does the government borrow?

The amount the government borrows to make up the difference between what it spends and what it collects is known as "public sector net borrowing" or “the deficit”

It borrowed £26.7bn in July

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How does the government borrow money?

The government borrows in the financial markets by selling bonds - which is basically an basically an interest-paying "IOU”

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When does it have to be paid back?

It varies

Some government borrowing has to be repaid in a month, but some lending is for as long as 30 years

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What is the difference between the government deficit and debt?

The deficit is not to be confused with debt, although both are linked

Debt rises when there is a deficit, and falls in those years when a government spends less than its income

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Find out more about how governments borrow money:
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