UK National Debt Set to Hit £2 Trillion
According to projections from the Office for Budget Responsibly (OBR), the United Kingdom is set to officially tip over the £2 trillion mark for the first time. The pace of which the national debt is rising will come as a big worry for policymakers, which if divided out between the UK population would stand at over £30,000 per person. If public sector pension liabilities are factored in, it is plausible to believe that the national debt could be in excess of £5.5 trillion.
This comes amid a record monthly budget deficit of £61.3 billion for April. According to the OBR, government actions attempting to control the spread of coronavirus have led to a surge in borrowing so that support schemes for families and business can be financed. An aspect not considered by most media circles is the collapse of tax receipts, due to the forced closure of many businesses and the following furlough scheme for employees not working.
This ties in with official statistics from the Treasury, which show around 10.7 million workers in Britain are receiving income support from the government. Added on top of the latest unemployment statistics, it is likely that a third of the UK labour force is not currently working at the moment. The unemployment figures for April are due to be released later on in mid-June, and they are sure to paint a very bleak picture for the UK labour market.
Over the last two months, gold has been strengthening against the pound sterling. It is currently trading at £1,400.33 per troy ounce at the time of writing, which is not quite the high of £1,458.73 in mid-May, but still represents a rise of 10%. With worse economic news likely to come over the next few weeks, take some time to consider if this is the opportune time to acquire some physical gold.
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