UK Debt On Course To Become Largest In G20

Wed, 25 Mar 2009

Britain is on course to have the biggest national debt in the industrialised world, finance experts have revealed.

The International Monetary Fund has warned that Treasury borrowing will reach £165 billion next year, equal to 11 per cent of the UK’s Gross Domestic Product (GDP) – the highest in the G20 group of industrialised nations.

According to latest figures, public sector borrowing in 2009 has reached a record £75.2 billion, more than treble the total for last year. As a result, overall Government debt now stands at £717 billion.

The current state of Britain’s debt problem is worse than what many City analysts predicted, with critics blaming Prime Minister Gordon Brown’s borrow-and-spend plans.

Shadow Chancellor George Osborne said: "The Government has completely lost control of the public finances . People will be paying for Gordon Brown’s mistakes long after he has gone."

According to debt charity Credit Action, total UK debt in January 2009 stood at £1,457 billion (£1.5 trillion) - equal to roughly £60,000 per household.

In addition, borrowers currently pay close to £210 million in daily interest on their loans, mortgages, credit cards and other borrowings.
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