UK Public Debt May Reach 50 Years Peak
The UK Financial Research Institute (IFS) has announced that the separation from the European Union (EU) could raise the UK’s public debt to the highest level in the last 50 years. The statement from IFS, the UK’s EU non-negotiated separation of the country’s need for public borrowing may rise to £ 100 billion per year, which is equal to 90 percent of the national income said.
Because of the the UK’s separation from EU, public debt could be the highest level of the last 50 years.
“The British government is now catched by wind without a financial anchor. In case of a separation without an agreement, temporary tax deductions may be applied in order to support the economy very carefully and public expenditures may increase.” IFS Director Paul Johnson said.
Currently, the UK’s annual public debt is around 80 percent of its national income.