The United Kingdom's public sector net debt has surged to its highest level since the early 1960s, according to a report released Friday by the Office for National Statistics.
At the end of May, the public sector net debt, excluding public sector banks, was estimated to be 99.8 percent of the gross domestic product (GDP). This figure marks an increase of 3.7 percentage points compared to the same period in the previous year, maintaining the highest debt level seen since the early 1960s.
Data for the financial year up to May indicated that borrowing amounted to £33.5 billion, which is £0.4 billion more than the same two-month period a year ago. However, this figure falls short of the £35.0 billion forecast by the Office for Budget Responsibility.
In May alone, public sector net borrowing increased by £0.8 billion from the previous year, bringing the total to £15.0 billion. This represents the third-highest borrowing figure for May since monthly records began in 1993.
The central government's receipts grew by £1.0 billion on an annual basis, while expenditures increased by £2.8 billion. Interest payable on debt reached £8.0 billion, marking the second highest payable for May since monthly records began in 1997.
Economist Alex Kerr from Capital Economics mentioned that the recent fiscal data offers some positive news amidst a series of disappointing fiscal outcomes. However, Kerr also pointed out that these improvements do not eliminate the substantial fiscal challenges that lie ahead for the new government.
