UK Debt On Track To Overtake Greece Deficit

Fri, 19 Feb 2010

Britain may end 2009 with larger debts than those of Greece, economists have warned.

According to official figures, the government borrowed £4.3 billion in January, equal to a staggering £97,199 per minute, increasing UK debt to £848 billion.

Last month’s deficit marks the first time that the government has been forced to borrow in January since records began in 1993.

As it stands, Britain's deficit is the third worst in the world according to OECD figures, with only Iceland (15.7 per cent of GDP) and Greece (12.7 per cent of GDP) having higher deficits.

But experts say Britain will overtake Greece this year as it is on course to borrow the equivalent of 12.8 per cent of GDP in 2009-2010.

Graeme Leach, chief economist at the Institute of Directors, said: "The figures are utterly dire. The Government is borrowing more than £1 for every £4 it spends. This is not sustainable."

Shadow Treasury Secretary Philip Hammond warned: "We can't go on like this. The prime minister must now heed the advice of leading economists and business leaders and set out a credible plan to get the deficit under control, starting this year to put Britain back on her feet."

"The longer he delays, the more the recovery and our credit rating will be put at risk."
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