The UK government has injected billions of pounds to fight the covid-19 pandemic and protect the economy. The fall in government tax receipts coupled with a rise in government spending due to lockdown measures particularly in 2020/2021 is increasing the spate of government borrowing, and in turn, adding to public debt. Now that the economy is recovering, the Conservative government is setting out new fiscal plans to rein in government borrowing and ensure the public finances return to a sustainable path.

Task 1:

Critically discuss how the UK's use of demand management policy in stimulating the economy during the recent coronavirus recession has raised concerns about the UK's debt burden.