UK Public Debt hits New High

Recent studies by the Office of National Statistics have revealed that public sector borrowing has hit record levels, topping almost £20bn in May.  This figure is literally more than double the figure compared to 2008 which saw it around £8bn. Overall, the total government debt is continuing to rise, and in the past year it has exploded in the order of £150bn, which equates to over 54% of the GDP.

British Chancellor, Alistair Darling recently forecasted that the total government dead will reach the figure of £175bn by the end of the year.    Economic analysts have described the situation as dire, after tax revenues have dwindled in some cases by over 27%.

Whilst the government has had to observe drops in tax revenues it has not been reining in spending.  With an outlay of over £50.6bn in May compared to an income of just £30.6bn there is a shocking £20bn deficit.  This reckless spending by the British government has seen it criticized by economic analysts and spending experts.

The government’s fiscal policy has come under close scrutiny in past months, due to the debt burden that it is putting on the UK taxpayer.  With no credible plan to control their public spending, the weathered labour party are doing very little to help the damaged economy.

With unemployment now at over 2.26 million people, the public borrowing looks set to rise beyond the chancellor’s modest predictions when compared to independent projections that forecast seeing the public debt rise to £200bn before the end of the year.

The continued rise in public debt is fuelling political debate about the continued issue of irresponsible public spending.  The labour party are yet to make an announcement.

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