2023-06-21 23:32:13
British inflation, the highest of the G7 countries, was even higher than expected in May, for the third consecutive time, with 8.7% over one year, in a country in the grip of a severe economic crisis. Cost of life. And, it is not the only bad news on the economic plan since the public debt has just exceeded 100% of the GDP.
Published on: 06/21/2023 – 23:32
With our correspondent in London, Emeline Vin
British public debt had not exceeded 100% of GDP since 1961 and stood at nearly 3,000 billion euros at the end of May, according to estimates from the national statistics office.
Several factors explain the increase in government borrowing and therefore this symbolic overrun: aid programs to support households in the face of rising energy prices, higher interest rates on the debt, and the revaluation allowances in the face of inflation.
Expenditure justified, according to the Minister of Finance, by the pandemic and the war in Ukraine. This Wednesday, June 21, Jeremy Hunt renewed his intention to halve inflation and reduce this public debt.
This estimate, which can still be revised, will have been badly received by the Prime Minister. Rishi Sunak had made tax cuts one of his government’s five priorities. It now seems complicated to keep this promise, one year before the general elections which already promise to be threatening for the conservative party, in power for twelve years.
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