UK’s public debt to keep rising

Tim Wallace
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RNMENT consumption is rising at its fastest pace in eight years, a group of economists said today, warning that the very slow pace of the coalition’s austerity plans means deficit reduction will have to drag on for another two full parliaments.

Slow growth combined with this year’s 2.8 per cent rise in government consumption mean the national debt will rise to 85 per cent of GDP by 2017/18, the Centre for Economics and Business Research said – and it will keep rising rapidly beyond.

The think tank expects the UK’s budget deficit to stand at £68bn that year, more than double the £31bn forecast by the Office for Budget Responsibility, the government’s fiscal watchdog.