Economics
U.K. Government Debt Tops 2 Trillion Pounds for First Time
- Sunak says difficult decisions needed to reduce debt load
- Spending jump puts burden above 100% of economic output
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U.K. government debt passed 2 trillion pounds ($2.6 trillion) for the first time, a milestone that will stoke the debate over how Chancellor of the Exchequer Rishi Sunak should finance his unprecedented support for the pandemic-ravaged economy.
It means Britain now owes an amount equivalent to more than 100% of economic output, the heaviest burden since the early 1960s, the Office for National Statistics said on Friday.
Sunak said the figures show that difficult decisions are needed to bring the nation’s public finances back to a sustainable footing, in a clear signal he’s not prepared to allow borrowing to accumulate unchecked for too long.