the squeeze on Britain’s finances — in charts

The UK’s Public Debt burden has grown faster than any other advanced economy on the eve of the Covid -1 epidemic, helping to pay interest and limits the country’s ability to spend more on defense and care for an elderly population.

Chancellor Rachel Reeves will try to hold public money after the first budget of the lab on Wednesday, just five months after the lab’s first budget after taking over its financial plans.

But his Spring statement Economists warned.

According to the IMF data, the UK’s total government’s DEBT and GDP increased from 5.7 percent of GDP to 8.5 percent in 2021, according to the IMF data, the biggest growth of the advanced economy throughout Singapore.

This rise reflects the inheritance of Britain’s stagnant economic growth and the inheritance of expensive government reactions for the expenditure of pandemic and higher power. Economists have said that the Reeve will fight to meet the increasing demands in the public service, while taking the orrow for a long time should be avoided.

City’s UK economist Ben Nabro said, “The underlying financial position of the UK is not yet stable.” Worse news may be ahead in autumn. ”

Reeves is expected to unveil a financial repair work to reach $ 15 billion in the speech and welfare cuts in his spring, as he responded to the forecast to be updated from the office for budget responsibilities.

He even promised to be with the promise of a personal tax growth as a reason to be with the promise of the promise of the European language to move the Labor backbanch for investment in government services as well as in government services. Defense expenditureThe

At the same time, the inheritance of the Debt-based burden from 2019, the former conservative Prime Minister Liz Trs ‘tax-cut “Budget” was left in the United States’ government orrow adoption of the UK, “jitter”, alerting the National Institute for social and economic research.

Like the UK, like many other European countries, the Covid -19 borrowed a lot to support its citizens during the epidemic and to support its citizens for injury due to the increase in energy prices after Ukraine’s full -scale invasion.

Investig economist Sandra Horsfield says, with high interest rates on high interest rates and many other countries, the relatively high proportion of the index-connected Debt, the slower trend compared to the United States, “Additional Debt for the United Kingdom was more heavier than many other peers.”

In the current fiscal year, OBR hopes that the country will spend about $ 105 billion at Debt interest, spending $ 88 billion for public credit, £ 37.5bn for defense, £ 72BN for investment or even $ 90 billion for education.

The Bank of England also has the expense to make the quantitative ease of strategy involuntary Heavily weighted in public financeS, such as the United Kingdom, uses an accounting treatment that shows more expenses than other economies, including the Eurozone and the United States.

Some countries like Ireland, Portugal and Switzerland have declined between their Debt-to-GDP ratio between 2019 and 2024. In Germany, which is planning to dramatically increase the orrow, GDP has increased by 5.5 percent points that it is more eas than the period.

Despite the recent gains, the Overall Government Debt-to-GDP ratio of the UK is still lower than many other countries like the United States, Italy and France.

The solution to Britain’s revenue condram labor is surprisingly, growing. Reeves and Prime Minister Sir Care Starmar have promised to follow growth reforms such as the rules of the Luzer’s plan and business control.

However, Reeves hits the business with $ 40 billion a year in additional tax on his October budget. GDP growth has not yet been accepted since the team took power last July. Meanwhile, the Orrows have been uninterruptedly printed the official forecast, and the Debt-to-to-GDP ratio has been predicted to continue this decade.

“No doubt the financial position is annoying,” said Ruth Gregory, an economist at the consultant Capital Economics. “Low growth and higher interest rates are more difficult to find people’s debt as part of the fall of GDP”

Economists have warned that public money claims will only increase.

“In the long run, the pressure on the public purse from the old age of the population is clear in the UK,” added Horsfield. “Beginning from the high debt level of sufficient amounts enhances the challenge further.”

In the spring statement, Reeve’s announcements will concentrate on recovering the headroom required to fill the “stability rules” of daily expenditure with revenue between 2029-2030.

This is a difficult goal: the UK has been able to fund the entire day with full taxes in just three years in this century.

Officials are hoping that Reeves will bring back the headroom to about $ 10 billion against this rule, where it stands in October.

The Chancellor is ready to ensure plans to withdraw defense expenditure from 2.5 percent to 2.5 percent of GDP, but it is seen as insufficient in US President Donald Trump’s European promise. European leaders have been Debate over lifting defense expenses About 3.5 percent or more of GDP in the upcoming decade.

“We are now moving to a world where defense expenses are increasing as a part of national income – and we know that the cost of health will certainly increase when the population age increases,” Paul warned JohnsonDirector of the Institute for Physical Studies.

He also added, “We have got low growth, we have problems to spend all other parts of the welfare state, social care and all these things.” “It puts us in a very tight position.”