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Budget 2021: Why the government can keep on borrowing

Since the start of the coronavirus pandemic, the government has borrowed a record Β£270bn and has to come up with a way of paying it back while continuing to support the millions still out of work or on furlough due to lockdown.

In his Budget statement, the chancellor is set to extend furlough to September, paying up to 80% of people's wages.

Chancellor Sunak will give an update on the state of the UK's finances, amid the biggest national debt in more than 50 years.

There are also reports he is planning to increase some taxes. But how can the government keep on borrowing?

Newsnight's Lewis Goodall reports.

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Duration:

5 minutes