Categories: Business

UK public debt crosses £ 2,000 billion for the first time, sage Sunak warns of taking tough decisions

Photo: REAUTERS

Rishi Sunak warns of difficult decisions as UK debt hits 2 trillion pounds

London. Britain's government debt has crossed two thousand billion pounds (about 2,600 billion dollars) for the first time. This is due to the borrowing of large amounts to support the economy in the wake of the corona virus epidemic. The National Statistics Office said on Friday that the government took loans of £ 26.7 billion in July, the fourth-largest borrowing amount of any month since the beginning of record-keeping in 1993. This increased the debt to £ 2,004 billion.

The rise in debt also marks the first time that Britain's total debt has exceeded its total economic output value. Now Britain's debt has reached 100.5 per cent of its annual gross domestic product (GDP). This is the first time since 1961, when Britain's debt has exceeded 100 per cent of GDP.

This deterioration in the public financial situation has been largely due to the support schemes that the government has undertaken in the last few months to deal with the economic shock of the epidemic. The UK economy has already fallen by about 20 per cent due to the epidemic. UK Finance Minister Rishi Sunak said that the crisis has put public finances in trouble. We have tried to manage our economy and have taken measures to support millions of jobs, businesses and livelihoods. Without that support things would go awry.

The statistics agency said retail sales grew by 3.6 percent monthly and are now 3 percent above pre-epidemic levels.

This post was published on August 22, 2020 1:37 am

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