2 weeks Ago By Evening Standard
Britain notched up another grim economic landmark today when official figures showed the public mountain is now as big as the nation’s entire for the first time since 1961. Latest figures from the (ONS) today revealed that public sector net debt stood as precisely 100% of annual economic output, a level reached when the Harold Macmillan was Prime Minister but levels were coming down after the spending splurge on defeating the Nazis. The last time Britain’s debt was over 100% of GDP and still rising was in March 1941.
This time the public finances have been put under enormous strain by the costs of responding the triple whammy of the financial crisis, the pandemic and the energy crisis. The milestone underlines the scale of the task facing in her Budget next month as she struggles to get to grips with the deficit. Last week the Government’s public finance watchdog the warned that, on current trends, the UK’s debt mountain will almost triple to more than 270% of national income over the next 50 years because of pressures from an ageing population, the climate crisis and security risks, Today’s ONS figures also show that borrowing in August was £13.
7 billion, more than £3 billion higher than in August 2023 and the third highest August borrowing since monthly records began in January 1993. The state spent £103.1 billion in the month but collected only £89.
4 million in tax and other receipts. Borrowing in the financial year to August 2024 was £64.1 billion, up £0.
3 billion on the same five-month period a year earlier and the third highest year-to-August borrowing since monthly records began in January 1993.
