UK government debt exceeds GDP for the first time in 62 years
UK debt has risen above 100 per cent of gross domestic product for the first time since 1961 after public sector borrowing doubled in May. The Office for National Statistics said on Wednesday that net public debt reached 100.1 percent of GDP last month, the first time the figure has exceeded 100 percent since March 1961. The rise came after public sector net borrowing hit £20bn in May, up £10.7bn from the same month last year, largely due to the cost of security benefits social and energy support schemes. This was the second-highest May borrowing figure since monthly records began in 1993 and surpassed the £19.5bn forecast by economists polled by Reuters, as well as the £18.3bn forecast by the Office for Budget Responsibility, the UK tax body. guard dog. Borrowing in the financial year to May 2023 was £42.9bn, £19.6bn more than the same two-month period last year and £2.1bn more than the OBR had forecast.May's poor public finance numbers cast further doubt on the chancellor's ability to unveil big pre-election tax cuts while still sticking to her fiscal rules,” said Ruth Gregory, an economist at Capital Economics, referring Russia Mobile Number List to British chancellor Jeremy Hunt. . The ONS reported that in May “additional costs of energy support schemes and increases in both benefit payments and staff costs increased public sector spending”. It also showed that last month saw the lowest year-on-year increase in government receipts in any month since March 2021. Samuel Tombs, an economist at Pantheon Macroeconomics, said a sharp deterioration in the outlook for debt interest payments following a recent rise in government bond yields “suggests the chancellor will have no room to cut taxes before the next general elections, which must be held by January.
http://www.vietnamdata.co.uk/wp-content/uploads/2024/03/Russia.jpg
Recommended It estimated that the OBR would revise upwards its forecast for debt interest payments by around £39bn in 2024-25 and by around £17bn in five years' time, based on the current level of gilt yields. and market expectations for interest rates. Hunt said the government had “made difficult but necessary decisions to balance the books to halve inflation this year, grow the economy and reduce debt”. Separate ONS data released on Wednesday showed inflation did not slow as expected and remained at 8.7 per cent last month. Michal Stelmach, senior economist at KPMG UK, said that with the general election on the horizon, “finding a sustainable solution to balance the books amid new election promises will undoubtedly be a difficult task for the government in the coming months.
頁:
[1]