Government debt hits lb2 trillion for the first time ever
Credit;PA
Public sector borrowing has hit more than lb2 trillion the very first time in history as ministers invest vast amounts of pounds to aid the economy with the pandemic, new figures have revealed.
The Office for National Statistics (ONS) said official bodies borrowed lb26.7 billion in July, the fourth highest amount of any month since records began in 1993.
It pushed debt close to lb2,004 billion for the first time ever, and implies that the general public sector debt is greater than gdp (GDP) – the need for everything produced in the united kingdom each year.
Debt vs GDP
Debt reached 100.5 percent of GDP at the end of July, the first time it had risen above 100 per cent since 1961, the ONS experts said.
It marks a lb227.6 billion rise because this time this past year, according to the figures.
However, the state figures have been unusually inaccurate recently, as statisticians and economists attempt to learn how to account for the pandemic.
Just weeks ago the ONS revised down June's borrowing figure by lb6 billion to lb29.5 billion, as tax and National Insurance contributions rose more than expected.
If it remains unrevised, the most recent data means that the public sector borrowed lb28.3 billion more last month than in July 2021, if this was actually paying down a number of its debts.
The UK's debt pile has now hit lb2 trillion, just days after Apple had become the most valuable listed company in US history at 2 trillion dollars, or around lb1.5 trillion.
“Stark reminder”
Chancellor Rishi Sunak said: “This crisis has put the public finances under significant strain once we have seen a success to the economy and brought action to support countless jobs, businesses and livelihoods.
“Without that support things could have been far worse.
“Today's figures are a stark reminder that people must return our public finances to some sustainable footing with time, which will require taking difficult decisions.
“It can also be why we're taking action how to offer the growth and jobs which purchase our public services, by helping businesses to reopen safely and, through our Arrange for Jobs, protecting, supporting and creating jobs to make sure that nobody remains without hope.”
