UK economy being propped up by unsustainable levels of debt
Duncan Richardson, News Editor
10 Mar 2017, 10:08 a.m.
The UK’s economy is being kept afloat by retail spending and unsustainable spending, according to the office of Budget Responsibility (OBR).
For the first time since the 2008 economic crisis UK consumers are spending more than their incomes. By 2022 household debt is estimated to reach 153% of disposable income.
Unfortunately, the debt problem does not stop there. The government has also grown accustomed to living beyond its means and is expected to run a £69 billion deficit in 2017. UK Sovereign debt currently stands at £1.8 trillion and is growing at staggering £5,150 per second.
Phillip Hammond can raise National Insurance Contributions and increase the cost of a pint of beer, but the harsh reality is that each UK taxpayer is on the hook for £60,000. When you factor in future liabilities including public and state pensions, the real national debt is closer to £5 trillion or £156,000 for each taxpayer.