{"id":72876,"date":"2021-12-21T13:30:38","date_gmt":"2021-12-21T13:30:38","guid":{"rendered":"https:\/\/secondchargemortgageuk.com\/?p=72876"},"modified":"2021-12-21T13:30:41","modified_gmt":"2021-12-21T13:30:41","slug":"uk-hits-highest-borrowing-to-gdp-ratio","status":"publish","type":"post","link":"https:\/\/secondchargemortgageuk.com\/uk-hits-highest-borrowing-to-gdp-ratio\/","title":{"rendered":"UK hits highest borrowing to GDP ratio since the 60s"},"content":{"rendered":"\n

The UK borrowed a further \u00a317.4bn in November, bringing the overall borrowing to GDP ratio to levels not seen since the 1960s.<\/p>\n\n\n\n

Net debt now sits at 2,317bn, around 96.1 per cent of GDP.<\/p>\n\n\n\n

While it is around \u00a35bn less than November last year, the figure is also the second-highest November borrowing on record, the Office for National Statistics (ONS) found.<\/p>\n\n\n\n

Senior economist at KPMG, Michal Stelmach put the shrinking figure down to the \u201ccontinuation of economic recovery from the pandemic\u201d, as well as rising VAT receipts, PAYE income tax and a fall in non-interest spending.<\/p>\n\n\n\n

However, chief economic advisor Martin Beck, of the EY ITEM Club, cautioned that the near \u00a35bn (\u00a34.9bn) undershoot in comparison to last year\u2019s record figure was due to lockdown restrictions over the period, which \u2018greatly flattered\u2019 the comparison.<\/p>\n\n\n\n

To find out more about how we can assist you with your Second Charge Mortgage<\/strong> please click here<\/a><\/em><\/p>\n\n\n\n

Beck added that the lofty figure \u201cwas largely due to higher government spending, particularly on debt interest payments, which has been caused by the rise in inflation over the past few months\u201d.<\/p>\n\n\n\n

With the prospect of activity slowing around the turn of the year, amid the latest wave of Covid-19 and looming inflation hikes, the EY ITEM Club said it is unlikely that borrowing will fall below the Office for Budget Responsibility\u2019s (OBR) full-year forecast of \u00a3183bn.<\/p>\n\n\n\n

\u201cIndeed, that forecast might prove to be on the low side,\u201d warned Beck.<\/p>\n\n\n\n

Public sector net debt has been forecast to be around \u00a3136bn in the year to November 2021, the ONS added.<\/p>\n\n\n\n

Which prompted Stelmach at the fellow Big Four firm to project debt interest payments to total \u00a364bn this financial year, swelling from last year\u2019s \u00a339bn.<\/p>\n\n\n\n

\u201cAround a half of total public debt is linked to either inflation or the Bank of England\u2019s interest rate via QE, both of which will put further upward pressure on servicing costs next year,\u201d he explained.<\/p>\n\n\n\n

\u201cTaken together, with three further rate hikes that we expect by the end of 2022-23, they could add as much as \u00a311bn to borrowing that year, eating up over a half of the Chancellor\u2019s current fiscal headroom.\u201d<\/p>\n\n\n\n

By MILLIE TURNER<\/em><\/p>\n\n\n\n

Source: City AM<\/a><\/p>\n\n\n\n

Discover our Second Charge Mortgage Broker<\/strong><\/a> services.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

The UK borrowed a further \u00a317.4bn in November, bringing the overall borrowing to GDP ratio to levels not seen since the 1960s. Net debt now sits at 2,317bn, around 96.1 per cent of GDP. While it is around \u00a35bn less than November last year, the figure is also the second-highest November borrowing on record, the […]<\/p>\n","protected":false},"author":1,"featured_media":72575,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false},"categories":[1978],"tags":[2090,2193,2075],"yst_prominent_words":[497,1266,129,485],"acf":[],"yoast_head":"\nUK hits highest borrowing to GDP ratio since the 60s<\/title>\n<meta name=\"description\" content=\"The UK borrowed a further \u00a317.4bn in November, bringing the overall borrowing to GDP ratio to levels not seen since the 1960s.\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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