The public debt of Great Britain rose to almost 2,460 billion euros last month, i.e. to 97,5 percent of gross domestic product (GDP), due to borrowing.
The country began to borrow heavily due to rising energy prices and rising inflation, net borrowing of £13,5 billion in October, compared to £9,2 billion in the same month last year.
Analysts estimate that high borrowing in October is the result of the government's measure to protect households from high energy prices, reports SEEbiz.
In autumn, the authorities introduced a two-year limit on electricity and gas prices for households, and then a six-month limit for companies, public institutions and non-governmental organizations. They decided to take this step because of rampant inflation, especially high energy costs. "It is right that the country has increased its borrowing to support millions of businesses and families," commented the figures, the new British Chancellor of the Exchequer Jeremy Hunt.
He said that in order to respond to the challenge of inflation fueled by the skyrocketing energy bills, it is crucial to set public finances on a more sustainable path. Hunt unveiled a budget plan last week aimed at getting the numbers in order and taming rising inflation. The plan includes £55bn of tax increases and spending cuts, including a freeze on tax credits for citizens and an increase in taxes on windfall profits from the energy industry.
He then explained that Great Britain is in recession. The British economy will shrink by 1,4 percent next year, and unemployment will rise from the current 3,6 percent to 4,9 percent by 2024.
Bonus video:
