However, there are some signs of recovery as retail sales have rise back above pre-pandemic levels.
The Eat Out to Help Out in August also helped give the economy a boost.
But public sector debt has now exceeded gross domestic product (GDP) for the first time since the early 1960s.
This is due to increased government spending, as well as reduced cash receipts and a fall in GDP.
Public sector net debt at the end of July 2020 went up to 100.5 percent of GDP.
Before July, debt had not exceeded GDP since March 1961.
The ONS also said that in cash terms, debt has passed £2 trillion for the first time.
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9.30am update: Aldi plans to open 100 new stores with £1.3 billion of investment by the end of next year
The discount supermarket said it plans to create 4,000 jobs next year as part of the expansion plan, which is part of long-term plans to grow to a portfolio of 1,200 stores by 2025.
Aldi will drive investment into creating and upgrading stores, distribution centres and innovation across its operations, it said.
The update came as Aldi reported that sales increased by 8 percent to £12.28 billion in 2019.
Meanwhile, it saw pre-tax profits jump by 49 percent to £271.5 million for the year.
8.06am update: FTSE 100 remains unchanged as it opens this morning
The pound at 8am was 1.2779 dollars compared to 1.2700 dollars at the previous close.
The euro at 8am was 0.9099 pounds compared to 0.9149 pounds at the previous close.