The UK's national debt surpasses a staggering 100% of its total economic output.
Two months prior to introducing the fresh budget, the UK's national debt touches an all-time high. As per the national statistics office, the provisional estimate suggests that the debt has hit 100% of GDP by August's end. This figure has been unseen since the early sixties, the office further elucidated.
Additionally, the statistics revealed on Friday indicate "the most substantial borrowing ever recorded in August, apart from the pandemic period," according to Darren Jones from the UK's Treasury. Due to a fiscal deficit of around £22 billion, which we've inherited this year alone, we're now forced to make challenging financial decisions to strengthen our economy's base, Jones continued.
Prime Minister Keir Starmer, who led the left-wing Labour Party to win the election in July, has cautioned the British public about the need for "bitter" spending cuts and tax hikes before the budget presentation slated for the end of October.
The UK's national debt reaching 100% of GDP by August's end is primarily due to the significant fiscal deficit, totaling around £22 billion this year. Further scrutiny of the government debt reveals the need for tough financial decisions to stabilize the economy.
