Tuesday, 24 January 2012

Britain's national debt tops £1 trillion

Britain's national debt has risen above £1tn for the first time on record, underlining the huge task facing the government in bringing the public finances under control.

Official figures released on Tuesday morning showed the total public sector net debt (excluding the impact of the 2008 banking bailouts) rose to £1.004tn in December, the highest since records began in 1993 and equivalent to 64.2% of GDP (up from 59.4% a year ago).

The government claimed that the milestone underlined the need to cut Britain's borrowing levels.

"[This] shows the unsustainable level of spending this country built up over the past few years, and shows why it is critical for our nation's future that we deal decisively with the deficit," a Treasury spokesman said. (Read further: Source)