UK's Soaring Debt Leaves Government With Limited Room for New Spending
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Britain's national debt has soared to almost 100% of GDP, leaving it exposed as interest rates rise. Debt interest payments are set to hit £100bn this year.
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The debt burden is restricting the ability of both the Conservatives and Labour to make spending commitments. Tax rises are already doing the heavy lifting.
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Cutting overall spending will be difficult given needs like the NHS and pensions. Boosting growth is vital but not easy amidst tight finances.
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Labour plans to borrow to invest, but extra debt still has a cost. The Tories want more private sector investment and to boost workforce participation.
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With debt interest already so high, there are worries tax rises and spending cuts will be needed, hampering growth ambitions.