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UK National Debt Rises to the Highest in 62 Years

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UK National Debt Rises to the Highest in 62 Years

UK national debt grew this month to its highest level as a share of the economy since 1961, according to figures released on Friday, adding to the financial issues that the new administration will face when it takes office following a general election in two weeks.

The UK national debt, excluding state-controlled banks, hit 2.742 trillion pounds ($3.47 trillion), or 99.8% of annual GDP, in May, up from 96.1% the previous year, according to the Office for National Statistics.

The increase came despite somewhat lower-than-expected government borrowing in May, which was 15.0 billion pounds, compared to experts’ median projection of 15.7 billion pounds in a Reuters survey.

Following an election on July 4, Britain appears to be on the verge of a change of government, with Keir Starmer’s Labour Party leading Prime Minister Rishi Sunak’s Conservatives in surveys.

During the COVID-19 epidemic, state debt in Britain skyrocketed, and the public finances have been hampered by poor growth and a 16-year high in Bank of England interest rates.

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Most other Western countries had significant rises in debt during the same period, although British debt levels are lower than those of the United States, France, and Italy.

A person enters the Treasury government building in London, Britain, on March 5, 2024. REUTERS/Toby Melville/File Purchase Licensing Rights opens a new tab.

Borrowing in the UK totaled 33.5 billion pounds in the first two months of the fiscal year, 0.4 billion more than the same period in 2023 but 1.5 billion pounds less than government budget estimates expected in March.

Capital Economics consultants warned that the lower-than-expected borrowing figures represented less public investment and would provide little comfort to Britain’s future finance minister.

“They do little to reduce the scale of the fiscal challenge that awaits them, in part because of the upward pressure on the debt interest bill from higher interest rates,” said Alex Kerr, an assistant economist at Capital Economics.

Labour and the Conservatives want to keep to existing budget rules that require official estimates – most recently updated in March – to indicate that debt as a proportion of GDP is dropping in the fifth year of the forecast.

Higher interest rates than projected in March’s budget left Britain’s next chancellor with only 8.5 billion pounds of freedom to meet these standards, down from the historically low 8.9 billion in March, Kerr noted.

Both Labour and the Conservatives have committed not to raise income tax, value-added tax, or other major levies, but government budget predictions in March revealed that tax as a percentage of GDP was on track to hit its highest level since 1948.

Source: Reuters

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Ana Wong is a sharp and insightful journalist known for her in-depth reporting on tech and finance. With a knack for breaking down complex topics, she makes them accessible for everyday readers.

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Former Top Northern Irish Politician Jeffrey Donaldson To Stand Trial Over Alleged Sex Offenses

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Jeffery Donaldson | CNN Image

Jeffrey Donaldson, the former head of Northern Ireland’s most famous pro-union party, will face trial on charges of previous sex offenses, including one of rape.

Donaldson went before a preliminary inquiry on Wednesday, which agreed to proceed with a trial set for September 10, according to a statement issued to CNN by the Northern Ireland Courts and Tribunals Service (NICTS).

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Donaldson | CNN image

Former Top Northern Irish Politician Jeffrey Donaldson To Stand Trial Over Alleged Sex Offenses

Donaldson resigned as head of the Democratic Unionist Party (DUP) in March after being accused with 11 sexual charges.

The lawmaker has since been charged with an additional seven counts. The 18 alleged acts include one allegation of rape, 13 charges of indecent assault on a female youngster, and four counts of gross indecency toward a kid.

Donaldson was asked in court whether he wanted to speak about the charges, according to PA Media. “Not at this stage,” he said, according to the news agency.

Eleanor Donaldson, his wife, is also scheduled to stand trial in September. She has been charged with one count of helping and abetting rape, three counts of aiding and abetting assault on a female child, and one count of cruelty to a person under 16.

Donaldson led the DUP from 2019 through much of the contentious Brexit process, frequently expressing his opposition to the Northern Ireland Protocol, a vital component of the Brexit withdrawal agreement that ensured there would be no hard border between Northern Ireland and the Republic of Ireland.

Donaldson and his wife have already denied all claims, according to Irish national network RTÉ on Wednesday.

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Jeffery Donaldson | CNN Image

Former Top Northern Irish Politician Jeffrey Donaldson To Stand Trial Over Alleged Sex Offenses

Donaldson’s trial was announced as Northern Ireland residents prepared to vote in the UK general election. Northern Ireland, one of the UK’s four devolved nations, has 18 members in the Westminster parliament. Northern Irish politicians can run for a seat in Westminster or the devolved legislature, the Northern Ireland Assembly. Sinn Féin, the leading nationalist party, does not take up their seats in Westminster if elected.

Donaldson was set to run again in the Lagan Valley constituency, but former DUP party colleague Jonathan Buckley has replaced him.

SOURCE – (CNN)

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Prince Harry Opens Up About Grief And Bereavement

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Prince Harry | CNN Image

Prince Harry discussed sorrow and grief with the founder of a charity that helps children who have lost a parent while serving in the British military forces.

“You convince yourself that the person you’ve lost wants you, or you need to be sad for as long as possible to prove to them that they are missed,” said the Duke of Sussex, who lost his mother, Princess Diana, when he was 12 years old.

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Prince Harry | CNN Image

Prince Harry Opens Up About Grief And Bereavement

“But then there’s this realization of, no, they must want me to be happy,” he told Nikki Scott, founder of Scotty’s Little Soldiers, in a charity video posted Thursday.

Diana died in a vehicle incident in Paris on August 31, 1997. She was 36 years old.

Harry emphasized the necessity of discussing feelings during the grieving process.

“That’s the hardest thing, especially for kids, I think, which is, ‘I don’t want to talk about it because it will make me sad, but once realizing that if I do talk about it, and I’m celebrating their life, then actually, things become easier,'” according to him.

Harry, a global ambassador for Scotty’s Little Soldiers, spoke with Scott ahead of Armed Forces Day on June 29.

Scott told the Duke about the moment she had to inform her son, Kai, that his father, Cpl. Lee Scott had been murdered in Afghanistan.

It was the worst. “How do you tell a 5-year-old this?” she asked, recalling the emotion of having “shattered his world” in July 2009.

Scotty’s Little Soldiers estimates that 2,100 children lose a parent who served in the UK military each year.

The nonprofit now serves over 680 members and hopes to serve over 1,000 persons annually by 2030.

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Prince Harry | CNN Image

Prince Harry Opens Up About Grief And Bereavement

Harry complimented Scott for her “incredible” efforts in establishing the foundation.

“It’s incredibly inspirational. I’m incredibly honored and privileged to be a part of Scotty’s now, and I’m looking forward to doing everything we can to bring in more people, generate more interest, collect more cash, and get the message out there to get more kids the help they so urgently need,” he said in a news statement.

A video of their entire talk can be viewed on the charity’s website.

SOURCE – CNN

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In The Final Days Before The UK Election, Rishi Sunak Insists That He Can Stay In Power

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LONDON — U.K. Prime Minister Rishi Sunak disputed claims on Sunday that his party will lose the July 4 general election, using one of his final TV interviews to defend the Conservatives’ economic record.

Rishi told the BBC that he expected to remain in power by the end of the week, despite opinion surveys showing the Conservatives behind the opposition Labour Party under Keir Starmer.

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Rishi Sunak | AP news Image

In The Final Days Before The UK Election, Rishi Sunak Insists That He Can Stay In Power

“I’m fighting very hard,” Sunak remarked. “And I think people are waking up to the real danger of what a Labour government means.”

While he admitted that the prior few years “had been difficult for everyone,” Rishi said it was “completely and utterly wrong” to say that Britain’s global position has weakened since Brexit.

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Rishi Sunak | AP News Image

In The Final Days Before The UK Election, Rishi Sunak Insists That He Can Stay In Power

“This declinist narrative about the United Kingdom is completely false. “I wholeheartedly reject,” he stated. “The United Kingdom is a better place to live than in 2010.”

After 14 years of Conservative-led governments, many voters blame the party for Britain’s cost-of-living issue, long healthcare waiting lists, high levels of immigration, and the disruptions brought about by the country’s exit from the European Union.

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Rishi Sunak | AP News Image

In The Final Days Before The UK Election, Rishi Sunak Insists That He Can Stay In Power

Rishi, who took office in October 2022, has attempted to silence his critics by claiming that his initiatives have begun to address such issues and threatening that Labour leader Keir Starmer would hike taxes if his party won the election.

SOURCE – (AP)

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