U.K. debt hits 100% of GDP

The British government’s debt has reached 100% of the country’s economic output, a historic high. Finance minister Rachel Reeves faces challenges as she prepares tax and spending plans due to a large budget deficit. Public sector net debt has risen to this level for the first time since records began in 1993. Government borrowing has increased due to the global financial crisis, COVID-19 pandemic, and weak economic growth. Reeves has indicated that taxes will increase in the upcoming budget, but ruled out raising income, corporation, and value-added taxes. The government has borrowed more than expected, putting pressure on public finances.