UK national debt could reach nearly 300% of GDP in next 50 years, watchdog warns
3 months, 3 weeks ago

UK national debt could reach nearly 300% of GDP in next 50 years, watchdog warns

The Independent  

Sign up for the View from Westminster email for expert analysis straight to your inbox Get our free View from Westminster email Get our free View from Westminster email SIGN UP I would like to be emailed about offers, events and updates from The Independent. Public debt is currently at its highest since the early 1960s, sitting at a total of some £2.7 trillion – equating to around 99.7 per cent of gross domestic product. But the fiscal watchdog warned on Thursday that the national debt is set to spiral to more than 270 per cent of GDP by the mid-2070s. While public spending is at nearly 45 per cent of GDP for the past fiscal year, its highest sustained level for almost 50 years, the OBR said these pressures could push spending to higher than 60 per cent over the next 50 years – despite state revenues being projected to stagnate at around 40 per cent of GDP. open image in gallery Spending on state pensions is on track to rise from 5.2 per cent to 7.9 per cent of GDP, while net interest spending is estimated to quadruple from 2.8 per cent to 11.3 per cent of GDP as the stock of debt increases.

Debt Spending Cent Gdp Westminster Email View Obr Next 50 Years  300  westminster  gdp  obr  nearly  fiscal  reach  warns  state  view  uk  50  spending  debt  watchdog  cent  national

History of this topic

America Needs to Break Its Debt Addiction — Crisis or Not
2 weeks, 2 days ago

America Needs to Break Its Debt Addiction — Crisis or Not

Live Mint  

-- This is the first part of a series of Bloomberg Opinion columns exploring the risks related to the US’s rapidly expanding debt and budget deficit. There are many answers, not least of which is probably the idea that the Fed, which has already crossed the Rubicon and engaged in quantitative easing through its purchases of Treasury and related securities, …

Interest on national debt tops £100bn a year as a result of Labour's Budget borrowing binge
2 months, 1 week ago

Interest on national debt tops £100bn a year as a result of Labour's Budget borrowing binge

Daily Mail  

Britain will spend more than half a trillion pounds servicing the national debt between now and the end of the decade, Budget documents reveal. The Office for Budget Responsibility said debt interest payments would total £672billion between 2024-25 and 2029-30 – or more than £100billion a year. Ball and chain: The Office for Budget Responsibility said debt interest payments will …

UK economic growth upgraded this year amid ‘temporary boost’ from spending
2 months, 1 week ago

UK economic growth upgraded this year amid ‘temporary boost’ from spending

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy The UK economy is set …

Public sector pay rises hand Reeves a £6.7bn headache ahead of Budget
2 months, 2 weeks ago

Public sector pay rises hand Reeves a £6.7bn headache ahead of Budget

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Please try again later {{ …

How Britain became addicted to spending
2 months, 2 weeks ago

How Britain became addicted to spending

The Telegraph  

Following the Government’s frequent warnings about the dire state of public finances, as well as the “worst economic inheritance since the Second World War”, households are fully primed for a series of tax raids in next week’s Budget. However, despite the Chancellor’s drastic need for cash, what might surprise voters is that tax revenues flowing into the Treasury are already …

Will Labour borrow to invest Britain out of its ‘black hole’?
2 months, 4 weeks ago

Will Labour borrow to invest Britain out of its ‘black hole’?

The Independent  

There’s been frantic speculation, at least in those circles interested in such matters, that the government is set to revise the fiscal framework inherited from the Conservatives. At the moment, the projection sees debt falling by about £9bn in five years – Reeves’s margin of safety or “headroom”. Experts say that the most liberal redefinition of the national debt could …

Britain’s choice: spiralling debt, £40bn in spending cuts or tax rises every 10 years
3 months, 4 weeks ago

Britain’s choice: spiralling debt, £40bn in spending cuts or tax rises every 10 years

The Telegraph  

However, Mr Hughes rejected a suggestion by Darren Jones, the Chief Secretary to the Treasury, that the soaring debt trajectory was purely down to the “shocking state that our public finances were left in by the previous government”. “Those are challenges that have faced successes in governments over extended periods.” Highlighting America’s rising debt trajectory, Mr Hughes added: “They’re not …

As US 'debt bomb' spirals towards $35 trillion, hedge fund boss warns politicians are spending 'at the expense of future generations'
9 months ago

As US 'debt bomb' spirals towards $35 trillion, hedge fund boss warns politicians are spending 'at the expense of future generations'

Daily Mail  

debt is currently above $34.6 trillion, according to official data Hedge fund billionaire Ken Griffin has warned that the 'surging' US national debt is a 'growing concern that cannot be overlooked.' It comes after fellow hedge fund manager Paul Tudor Jones warned earlier this year that a 'debt bomb' is on the verge of exploding in the US - and …

Britain’s debt timebomb is about to explode – and politicians are too timid to defuse it
1 year, 1 month ago

Britain’s debt timebomb is about to explode – and politicians are too timid to defuse it

The Telegraph  

300 years of borrowed money It was exactly the fear of this sort of behaviour that caused the House of Commons to give away its right to initiate spending in 1706. After all, there’s a good chance they won’t be in office when the bill eventually comes due – and an even lower one if they start to impose fiscal …

Government borrowing binge undermining faith in OBR forecasts, says IFS
1 year, 3 months ago

Government borrowing binge undermining faith in OBR forecasts, says IFS

The Telegraph  

Too much government borrowing is undermining faith in official economic forecasts, the Institute for Fiscal Studies has warned. The think tank said a raft of unexpected and expensive policies rolled out by recent Chancellors had led to a surge in the size of the state and fuelled Britain’s deficit, while also making forecasts less accurate. The result is a “ratchet” …

Global debt surges to record $307 trillion amid borrowing binge
1 year, 3 months ago

Global debt surges to record $307 trillion amid borrowing binge

The Telegraph  

Global debt has surged to a fresh record of $307 trillion as governments and financial services companies fuel a jump in borrowing. Borrowers added $10 trillion to the debt mountain in the first half of 2023, according to the Institute of International Finance. It comes as US government debt hit a record $33 trillion this month amid heavy borrowing and …

Skyrocketing interest rates forcing more households into debt, charity finds
1 year, 5 months ago

Skyrocketing interest rates forcing more households into debt, charity finds

The Independent  

Get the free Morning Headlines email for news from our reporters across the world Sign up to our free Morning Headlines email Sign up to our free Morning Headlines email SIGN UP I would like to be emailed about offers, events and updates from The Independent. Citizens Advice said the number of people it was supporting who could no longer …

Truss’s taskforce claims average Briton £10,000 worse off than US counterpart
1 year, 5 months ago

Truss’s taskforce claims average Briton £10,000 worse off than US counterpart

The Independent  

Get the free Morning Headlines email for news from our reporters across the world Sign up to our free Morning Headlines email Sign up to our free Morning Headlines email SIGN UP I would like to be emailed about offers, events and updates from The Independent. If over the next two decades the UK economy could achieve annual GDP per …

Jeremy Hunt gets £13bn tax cut boost ahead of general election
1 year, 8 months ago

Jeremy Hunt gets £13bn tax cut boost ahead of general election

The Telegraph  

The ONS cautioned that the annual figure was provisional and likely to be revised. It added that it had not yet updated its current tax estimates to reflect the OBR's latest economic forecasts, which predict a brighter economic picture and even stronger tax receipts. Debt interest payments rose by almost 50pc to £106.6bn last year according to the ONS, with …

ALEX BRUMMER: Britain's debt interest bill is robbing taxpayers
2 years, 1 month ago

ALEX BRUMMER: Britain's debt interest bill is robbing taxpayers

Daily Mail  

Before the financial crisis crashed the public finances and the economy in 2008-09, Labour Chancellor Gordon Brown liked to point out that his management of the public finances helped to cut the interest rate bill on the national debt to negligible levels. The Office for Budget Responsibility reckons the debt interest bill in the current 2022-23 fiscal year more than …

New UK leader to face highest government debt in 60 years
2 years, 2 months ago

New UK leader to face highest government debt in 60 years

Associated Press  

LONDON — British government debt rose to the highest level in almost 60 years last month and retail sales slumped, underscoring the scale of the economic challenges facing whoever replaces Prime Minister Liz Truss after her administration imploded under the weight of its failed financial plan. “Today’s weaker-than-expected public borrowing figures … are a reminder that amidst the current political …

UK reports bleak economic data, pound slips amid political crisis
2 years, 2 months ago

UK reports bleak economic data, pound slips amid political crisis

Al Jazeera  

The pound sinks against the US dollar while the latest official data shows the UK government borrowing surge and retail sales slump. UK government borrowing surged and retail sales slumped in September, official data showed on Friday, while the British pound sank against the US dollar on political uncertainty after the resignation of UK Prime Minister Liz Truss. Public sector …

Interest bill for UK's £2.4tn debt mountain more than DOUBLES to record £19.4bn in June
2 years, 5 months ago

Interest bill for UK's £2.4tn debt mountain more than DOUBLES to record £19.4bn in June

Daily Mail  

The government plunged deeper into the red today as interest on the £2.4trillion debt mountain hit an eye-watering new record. was more than double the same month last year, and a peak since records began in 1997 The debt interest costs in June dwarfed all previous monthly figures since records began in 1997 Mr Zahawi said: 'We recognise that there …

Borrowing cheer to prove short-lived for Chancellor, warns think tank
3 years, 5 months ago

Borrowing cheer to prove short-lived for Chancellor, warns think tank

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Official figures on Wednesday are expected to show borrowing …

UK national debt: who does the government owe £2 trillion to and should we be concerned?
4 years, 1 month ago

UK national debt: who does the government owe £2 trillion to and should we be concerned?

The Independent  

The UK’s national debt has hit its highest level in almost 60 years after the government spent another £22bn to help the country through the coronavirus crisis. The government issues bonds – contracts to borrow money, paying a set amount of interest over a given period of time – which are bought by private investors. In the years following the …

Government borrowing has hit £208billion in six months of coronavirus crisis
4 years, 2 months ago

Government borrowing has hit £208billion in six months of coronavirus crisis

Daily Mail  

The government has borrowed more than £208billion over six months to manage the crippling economic effects of the coronavirus crisis. National debt hit £2.06trillion at the end of last month, equivalent to 103.5 per cent of the size of the whole economy. There have been predictions that the situation will get even tougher as millions face unemployment as the economy …

Government borrows more than a billion pounds PER DAY during coronavirus crisis
4 years, 2 months ago

Government borrows more than a billion pounds PER DAY during coronavirus crisis

Daily Mail  

The crippling impact of coronavirus on the public finances was laid bare today after new figures showed the government borrowed more than £208billion over six months. Another £36.1billion was borrowed in September - the third-highest month on record and compared to just £7billion a year ago - as tax revenues slumped and the Treasury poured out bailout money. Another £36.1billion …

British Public Debt Tops 2 Trillion Pounds for First Time Due to Covid-19
4 years, 4 months ago

British Public Debt Tops 2 Trillion Pounds for First Time Due to Covid-19

News 18  

Britain's public debt went above 2 trillion pounds for the first time in July as the government ramped up public spending to cope with the coronavirus pandemic and tax revenues fell, official data showed on Friday. Net debt, excluding public banks, rose to 2.004 trillion pounds, up by nearly 230 billion pounds from July 2019 and equivalent to 100.5% of …

Tax rises needed to fill £130bn Covid black hole, Chancellor told
4 years, 6 months ago

Tax rises needed to fill £130bn Covid black hole, Chancellor told

The Telegraph  

The Chancellor will need to raise taxes to stop Britain’s debt pile spiraling out of control as the legacy of Covid-19 leaves a £130bn hole in the public finances for years, the Institute for Fiscal Studies has warned. Persistent weakness in the economy will leave government borrowing at £158bn next year, and about £130bn until as late as 2024-25, according …

Boris Johnson’s Brexit deal would swipe £1,100 from every person in the UK every year, devastating new analysis says
5 years, 2 months ago

Boris Johnson’s Brexit deal would swipe £1,100 from every person in the UK every year, devastating new analysis says

The Independent  

Sign up to our free Brexit and beyond email for the latest headlines on what Brexit is meaning for the UK Sign up to our Brexit email for the latest insight Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Please …

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