UK debt mountain hits £2.6 trillion – or greater than all of us produce in a 12 months
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ritain’s debt mountain hit an eye-popping £2.6 trillion in May – or greater than all of us produce in a 12 months, official figures revealed on Wednesday.
Government borrowing greater than doubled to £20 billion in May, pushed greater by the price of mammoth power assist schemes.
The Office for National Statistics mentioned borrowing in May was £10.7 billion greater than a 12 months in the past and the second-highest May borrowing since month-to-month data started in 1993.
Economists had predicted borrowing of £19.5 billion for May.
The ONS information additionally confirmed web debt reached £2.6 trillion as of the top of May, estimated at 100.1 per cent of gross home product (GDP).
This is the primary time the debt-to-GDP ration has risen above 100 per cent since March 1961, apart from throughout the pandemic, however this was later revised decrease.
Economists warn that when a nation’s debt reaches such eye-wateringly excessive ranges it’s more and more laborious to get the general public funds below management given massive borrowing curiosity funds.
It additionally casts a depressing cloud over the financial prospects of future generations to have the nation so weighed down by excessive debt.
Chancellor Jeremy Hunt mentioned the Government was taking “difficult decisions” to stability the books following the pandemic and Vladimir Putin’s invasion of Ukraine.
“We rightly spent billions to protect families and businesses from the worst impacts of the pandemic and Putin’s energy crisis,” he mentioned.
“But it would be manifestly unfair to leave future generations with a tab they cannot repay.
“That’s why we have taken difficult but necessary decisions to balance the books in order to halve inflation this year, grow the economy and reduce debt.”
But shadow chancellor Rachel Reeves mentioned: “This Tory government can’t get a grip of this problem because they are the problem.
“13 years of the Tories and their disastrous mini-Budget are damaging our economic security and leaving families worse off.
“We need a more secure economy, more secure family finances and a plan to help us grab hold of the opportunities before us.”