Britain’s crushing debt burden
By Associate Editor David Stevenson May 01, 2009
moneyweek
Alistair Darling tried to magic it away with some fantasy growth projections. But a future Budget will have to get serious about Britain’s debt, says David Stevenson.
How bad are the numbers?
Awful. At £90bn, public-sector borrowing for the year to 5 April 2009 hit its highest since the early 1990s. Yet for this year, the Chancellor has pencilled in a deficit of nearly double that – £175bn. “It’s difficult to put into words the extent of the meltdown in the UK’s public finances,” says The Daily Telegraph’s Liam Halligan. “During his 2008 budget, Alistair Darling said the UK would borrow a total of £70bn during 2009/2110 and 2010/2011. Today we learnt that £348bn of new debts will be racked-up on our behalf over that period.” The future looks no brighter. Even on official figures, the public purse will have to borrow more than £700bn from gilt market investors between now and 2013/2014, a rise of more than 60% on Darling’s estimates in last November’s Pre-Budget Report. Read the rest of this entry »