UK debt soars to highest level in 60 years, according to data
According to the Office for National Statistics, Britain's national debt has now equaled the size of the country's GDP. Read Full Article at RT.com.
TroibNews 
According to the Office for National Statistics (ONS), the UK's national debt has escalated to 100% of the nation's gross domestic product (GDP), a peak not seen since the 1960s. Recent data shows that government borrowing increased by £13.7 billion in the year to August, equaling the total annual output of the UK's economy.
ONS Chief Economist Grant Fitzner commented, "Borrowing was up by over £3 billion last month on 2023’s figure, and was the third highest August borrowing on record."
The statistics underline the daunting financial scenario left by the previous administration, as pointed out by Treasury Chief Secretary Darren Jones. He remarked that his party faces significant challenges ahead, stating, "When we came into office, we inherited an economy that wasn’t working for working people. Today’s data shows the highest August borrowing on record, outside the pandemic. Debt is 100% of GDP, the highest level since the 1960s."
The accrued debt has been partly due to significant economic stresses, including the global financial crisis of 2008 and the recent Covid-19 pandemic, exacerbated by sluggish economic growth thereafter.
Matt Swannell, chief economic adviser to the EY Item Club, described the UK's fiscal position as "challenging," predicting potential further declines through the year. He added, "The government will likely have to increase spending over the next few months, due to a combination of accepting the recommendations for higher pay increases from public sector pay boards and non-labor cost overruns across a range of government departments."
The Chancellor of the Exchequer, Rachel Reeves, has already indicated that taxes would be adjusted in the forthcoming October budget while ruling out hikes in income, corporation, and value-added taxes. In strategies aimed at reducing borrowing, earlier in August, Reeves declared the cancellation of winter fuel payments introduced by former Prime Minister Rishi Sunak during the cost-of-living crisis peak, delays in social care reform, and cuts to investments in road, rail, and hospital infrastructure.
Thomas Evans for TROIB News
ONS Chief Economist Grant Fitzner commented, "Borrowing was up by over £3 billion last month on 2023’s figure, and was the third highest August borrowing on record."
The statistics underline the daunting financial scenario left by the previous administration, as pointed out by Treasury Chief Secretary Darren Jones. He remarked that his party faces significant challenges ahead, stating, "When we came into office, we inherited an economy that wasn’t working for working people. Today’s data shows the highest August borrowing on record, outside the pandemic. Debt is 100% of GDP, the highest level since the 1960s."
The accrued debt has been partly due to significant economic stresses, including the global financial crisis of 2008 and the recent Covid-19 pandemic, exacerbated by sluggish economic growth thereafter.
Matt Swannell, chief economic adviser to the EY Item Club, described the UK's fiscal position as "challenging," predicting potential further declines through the year. He added, "The government will likely have to increase spending over the next few months, due to a combination of accepting the recommendations for higher pay increases from public sector pay boards and non-labor cost overruns across a range of government departments."
The Chancellor of the Exchequer, Rachel Reeves, has already indicated that taxes would be adjusted in the forthcoming October budget while ruling out hikes in income, corporation, and value-added taxes. In strategies aimed at reducing borrowing, earlier in August, Reeves declared the cancellation of winter fuel payments introduced by former Prime Minister Rishi Sunak during the cost-of-living crisis peak, delays in social care reform, and cuts to investments in road, rail, and hospital infrastructure.
Thomas Evans for TROIB News
