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UK Debt Crisis is at ‘Boiling Point’
The Chief Economist for The Bank for International Settlements (BIS) has written a report that states that most of Western Europe including Britain could cause a major crisis at the heart of the global economy as they and other countries such as USA and Japan are chastised for their levels of national debt.
The BIS said the UK’s structural budget deficit will be 9pc of GDP next year, the highest in the advanced world.
They say that Labour’s plan to consolidate the budget deficit by 1.3pc of GDP annually for the next three years is not enough and consolidations along the lines currently being discussed will not be sufficient to ensure that debt levels remain within reasonable bounds.
This analysis helps the Tory claims that markets will not wait patiently for the unlikely event of fast growth to pull us out of the deficit and action needs to be taken quickly. Now that the election day has been announced we will have to wait and see which approach we will be left with but if Labour get to power again, I suspect according to this report, we should be worried.
In either scenario, it’s going to be tough so the best advice I can give is to get your own finances in order and reduce your debts – so don’t delay – start today!