UK Debt To Become Worst In G20

Tue, 04 Aug 2009

Britain’s national debt will become the largest of the world's richest nations by next year, according to the respected International Monetary Fund .

Chancellor Alistair Darling was informed by the IMF that the economic recession is predicted to cost each British family £7,600 on average, more than any of the other major economies.

It said the difference between UK income and expenditure by the start of 2010 will be 13.3 per cent of annual output, compared to America's shortfall of just 9.7 per cent.

Furthermore, the IMF forecast UK debt will reach 100 per cent of output by 2014, which would have a major impact on the nation's credit rating and lead to a huge rise in the cost of borrowing .

Commenting on the figures, Shadow Chancellor George Osborne said: "It's official - the debt crisis is worse in Britain than any other major economy."

"We now face a 100 per cent national debt and the humiliation of the first ever downgrade in Britain's credit rating."

According to official figures, Britain’s total borrowing now stands at a staggering £799 billion – equal to 56.6 per cent of gross domestic product (GDP).
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