The UK government has a new headache – the country’s rising national debt! According to Andrew Bailey, Governor of the Bank of England, serious decisions will be needed to prevent further debt growth. During discussions with lawmakers, he expressed support for government initiatives aimed at stimulating economic growth.
Bailey highlighted three major structural challenges straining the UK's public finances: climate change, an aging population, and the "end of the post-Cold War dividend" in defense spending. He stressed that each of these issues requires a careful and urgent response.
Speaking at a Treasury Committee hearing on financial stability, Bailey stated that very serious decisions would have to be made in 2025. He also emphasized the importance of accelerating economic growth and maintaining financial stability. Additionally, he welcomed the Labour government’s efforts to boost the UK economy.
Bailey believes the UK is not alone in facing financial pressures. He paid particular attention to the spiraling national debt that some experts warn about but dismissed these concerns as overly simplistic. Previously, he had warned against basing predictions about future government policy on a linear projection of national debt trends.
