Economists have warned that this could lead to higher interest rates and mortgage costs, impacting households and the economy. Families will pay the price due to high borrowing costs, debt and potential interest rate increases.
The British economy is facing significant challenges, with public debt reaching 96.4% of gross domestic product (“GDP”), which is substantially higher than the 61.2% recorded in 1976 when the country required support from the International Monetary Fund (“IMF”).
The current economic growth rate of 1.2% and deficit of 5.1% are indicative of weaknesses greater than those experienced during the tenure of Labour Prime Minister James Callaghan.
The Government’s borrowing costs have increased dramatically, with ten-year gilt yields at 4.6% and thirty-year gilts at 5.5%....<<<Read More>>>...