According to Charlie Nunn, “massive shocks” like the global financial crisis, the pandemic, the conflict in Ukraine, and some problems unique to the UK economy have driven up the country’s national debt over the past fifteen years.
Speaking only to News, he added that this would restrict the amount of money that the incoming administration could spend.
He declared, “We have raised the UK’s government debt ratio.” We also need to acknowledge that the government is unable to pay its way out of this next phase.
In recent years, the US has increased its government [deficit] to GDP ratio to 7.5%. The US is able to do so because its economy is expanding at a rate higher than 3% and because the US dollar is the global reserve currency.
While the UK does not have those options, we do require a very clear plan and set of priorities. Then, we must figure out how to attract the substantial amount of local and foreign private capital that is eager to join the government’s investments in the UK.
