The UK’s debt is on an unsustainable path

The UK’s debt path is “unsustainable,” and reversing it will require Chancellor Rachel Reeves to deliver primary budget surpluses for the first time in 25 years, according to the National Institute of Economic and Social Research. The economic think tank claimed that Reeves will require an additional £50 billion ($65 billion) in her upcoming budget to stabilize the nation’s finances and cushion against future shocks. It warned that with interest costs rising sharply, the chancellor must run primary surpluses to keep debt from rising. Chancellor Rachel Reeves suggested she may increase taxes The last time the UK ran a primary surplus was in 2001–02, under Tony Blair, a period when the economy was growing much more rapidly and debt was only 30% of GDP. Public debt is now perilously close to 100% of GDP. In her pre-budget speech, Chancellor Reeves hinted at significant tax increases to patch up the UK’s...

https://www.cryptopolitan.com/reeves-urged-to-deliver-primary-surplus/