In August, the public sector debt in the United Kingdom reached an unprecedented 100% of Gross Domestic Product (GDP), marking the highest level since the 1960s. The UK’s public debt now totals £2.546 trillion (slightly over €3 trillion).
While provisional figures released last year indicated that the debt had previously surpassed the 100% threshold, those numbers were later revised downward. The figure published on Friday is characterized as “a very preliminary estimate” by the Office for National Statistics (ONS).
For several months, public debt has lingered around the 100% mark, significantly inflated by financial aid provided during the COVID-19 pandemic and the ongoing energy crisis.
Additionally, the deficit continued to rise in August, with public sector borrowing amounting to £13.7 billion (€16.3 billion), exceeding expectations, according to the ONS’s monthly report on public finances released on Friday.
Since the start of the UK fiscal year in April, the country has borrowed £6.2 billion (€7.4 billion) more than projected by the Office for Budget Responsibility (OBR). This increase in debt adds further pressure on the Labor government that took office in early July.
Other nations are also grappling with rising debt levels. In France, public debt has surged sharply since the health crisis, climbing to over 110% of GDP by the end of the first quarter— a rate surpassed only by Italy (nearly 138% of GDP) and Greece (almost 160%) within the EU.
