The UK’s national debt has reached unprecedented levels, surpassing 99.8% of the nation’s GDP in May, according to official figures.
“This marks a historic high, unseen since 1961,” said the Office for National Statistics (ONS). This highlights the significant financial challenge facing the next government.
Despite lower-than-expected government borrowing, the data underscores the need for fiscal responsibility, with both Labour and the Conservatives pledging to reduce debt.
UK Debt Decrease Plan
Jerrymusa.com reports that Prime Minister Rishi Sunak has committed to decreasing debt as part of his five-point plan, announced at the start of 2023. “We will meet our fiscal rules and reduce the debt-to-GDP ratio over the next five years,” said Sunak.
The ONS reported that public sector net debt rose to £2.35 trillion, with public sector net borrowing hitting £15 billion for the month. While this represents a £0.8 billion increase from the previous year, it fell short of forecasts by £0.6 billion.
Government receipts rose by £1 billion, driven by income tax, corporation tax, and VAT, reaching £76.8 billion for the month. “This is a welcome increase, but we must continue to ensure that our spending is efficient and effective,” said a government spokesperson.
However, government spending surged by £2.8 billion, partly due to increased social benefits and departmental expenses, totaling £91.6 billion for May. “We are committed to getting the best value for taxpayers’ money,” added the spokesperson.