UK National Debt Reaches 100% of GDP for the First Time Since 1960s
The UK's public sector debt has hit 100% of the country's annual economic output for the first time since the 1960s, according to the Office for National Statistics. Government borrowing in August was reported at one dollar 13.7 billion, overshooting the forecast by two dollars billion. The current financial year's borrowing stands at one dollar 64.1 billion, six dollars billion higher than expected, highlighting the fiscal challenges ahead of Chancellor Rachel Reeves' first budget.
The UK's public sector debt has reached 100% of the country's annual economic output for the first time since the 1960s, according to the Office for National Statistics (ONS).
The latest preliminary estimate by the ONS shows that the debt has risen from 99.3% recorded in the previous month.
Government borrowing in August was reported at one dollar 13.7 billion, overshooting the Office for Budget Responsibility (OBR) forecast by two dollars billion.
For the current financial year, borrowing stands at one dollar 64.1 billion, six dollars billion higher than the OBR forecast.
ONS Chief Economist Grant Fitzner noted that although central government tax receipts grew strongly, they were outweighed by increased expenditure on benefits and public services due to higher costs and pay.
The data comes ahead of Chancellor Rachel Reeves' first budget on October 30, amid warnings of a 22 dollars billion shortfall in public finances left by the previous government.
Measures such as spending cuts and potential tax increases are expected as part of efforts to address this fiscal challenge.
TaxPayers' Alliance CEO John O'Connell emphasized the need for the government to prioritize managing the national debt to avoid burdening future generations.
The latest preliminary estimate by the ONS shows that the debt has risen from 99.3% recorded in the previous month.
Government borrowing in August was reported at one dollar 13.7 billion, overshooting the Office for Budget Responsibility (OBR) forecast by two dollars billion.
For the current financial year, borrowing stands at one dollar 64.1 billion, six dollars billion higher than the OBR forecast.
ONS Chief Economist Grant Fitzner noted that although central government tax receipts grew strongly, they were outweighed by increased expenditure on benefits and public services due to higher costs and pay.
The data comes ahead of Chancellor Rachel Reeves' first budget on October 30, amid warnings of a 22 dollars billion shortfall in public finances left by the previous government.
Measures such as spending cuts and potential tax increases are expected as part of efforts to address this fiscal challenge.
TaxPayers' Alliance CEO John O'Connell emphasized the need for the government to prioritize managing the national debt to avoid burdening future generations.
