UK debt reaches highest level in 60 years

9/23/2024 9:36:11 AM

(MENAFN) The national debt of the UK equals 100 percent of the country’s annual economic output, marking its highest level since the 1960s, according to a report released by the Office for National Statistics (ONS) on Friday.

Government borrowing increased to USD18.2 billion in August, matching the annual total of economic production, as reported by the ONS.

“Borrowing rose by over USD3.8 billion compared to 2023, making it the third highest borrowing level recorded for August,” stated Grant Fitzner, chief economist at the ONS.

Treasury Chief Secretary Darren Jones indicated that the data highlights the concerning state of public finances left by the Conservatives. He cautioned that the Labor Party would need to make “tough decisions” to restore the economy.

“When we took office, we inherited an economy that was not benefiting working individuals. The current data reveals the highest August borrowing recorded, excluding the pandemic, with debt at 100 percent of GDP, the highest since the 1960s,” he remarked.

Government debt expanded significantly during the global financial crisis of 2008 and again during the Covid-19 pandemic. Ongoing weak economic growth has also played a role in the rising deficit.

According to Matt Swannell, chief economic adviser to the EY Item Club, the UK’s fiscal position continues to be “challenging” and may “deteriorate further as the year progresses.”

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