UK public debt hits historic high amid economic concerns
Date
6/23/2024 5:17:15 AM
(MENAFN) Public debt in the United Kingdom has soared to levels not seen since 1961, according to official data from the British Office for National Statistics. As of last May, net public sector debt, excluding state-controlled banks, increased to £2.742 trillion (USD3.47 trillion), which equates to 99.8 percent of the UK's GDP. This marks a significant rise from the previous 96.1 percent. The current debt level is the highest since March 1961, reflecting the substantial financial pressures facing the nation.
The escalating debt has prompted warnings from economic think tanks about the challenges awaiting the next British government. The Decision Foundation highlighted the need to address a projected deficit of up to £33 billion (USD42.2 billion) in public finances. The foundation cautioned that achieving this without implementing a new round of severe austerity measures will be challenging. This sentiment was echoed in a report by The Guardian, which criticized the ongoing debate between the Labour Party and the Conservatives over funding specific pledges as "detached from reality." The report underscored that election promises are often based on cuts that may prove difficult to realize.
Both major political parties have pledged to reduce debt as a proportion of national income within five years. However, this objective faces several obstacles, including higher interest payments on the existing debt, slower-than-anticipated productivity growth, and the financial burden of £10 billion (USD12.7 billion) in compensation for the tainted blood scandal. These factors collectively complicate the government's efforts to manage and reduce the nation's debt, signaling a challenging economic landscape ahead.
MENAFN23062024000045015682ID1108361568
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.