The UK debt now stands at over £1 trillion. That’s £17,297 for every man, woman and child in the country.
That’s £38,024 for every person in employment.
The interest on this debt is more than £40 billion per year.
This year every household will pay £1,924 in taxes just to pay that interest.
Debt is nudging 80% of GDP, around 25% higher than it was five years ago.
This isn’t a new thing as the debt at the end of the Napoleonic wars at the beginning of the 19th century was 200% of GDP. It was similarly high after the First World War.
Some of the money borrowed from the USA at the time of WW1 has never been repaid or officially written off.
The final installment of debt payable to the USA for money borrowed during WW2 was paid in 2006.
When the UK was forced to go cap in hand for a bail out to the IMF in 1976, the proportion of debt to GDP was around 65%
Here is a rough sketch of where your money as a UK taxpayer (and if you live here, that’s everyone who buys anything) goes. Interesting that ‘England’ doesn’t get a cost mind you!
You know, I think there might just be another financial crisis looming. One which will make 2008 look like a Sunday School picnic.