UK debt of 100.6% of GDP
Prime Minister Rishi Sunak hints at the possibility of tax hikes as Britain faces a financial hole following the economic impacts caused by the nationwide lockdown.
Public debt increased by £8 billion in January, the National Bureau of Statistics revealed.
Following the government’s numbers release, Musak recently said:
“We have been able to respond inclusively and generously through this crisis, due to our strong finances.”
“So, as our economy begins to recover, we should aim to bring public finances back to a more sustainable footing.
It was the first time that January had a deficit in over a decade, but that figure was lower than the £24.5m forecast by economists.
Government spending in January 2021 rose more than 30% to £81.9 billion from the previous year.
In 2020/21, the UK is projected to record a deficit of 350 billion pounds, the highest percentage of GDP since World War II (17%).
According to the ONS, the government’s debt totals 100.6% of UK GDP. UK debt is now above 2.1TRN after a continuous increase in borrowing rates during the pandemic.
