Hermes' Williams: Spiralling UK debt could become 'vicious cycle'

UK debt

The UK's borrowing has risen again but, far from being just another statistic, Neil Williams, Hermes' chief economist, tells Annabelle Williams why debt levels represent a real threat to economic stability

News that the UK's public borrowing figure rose again in August caused ripples of concern among economists. So far this year, public sector net borrowing is at £45.4bn -  a 6% rise on last year. The latest figures from the Office for National Statistics show the UK has a whopping £1.43trn in public sector net debt excluding public sector banks, as of August 2014. This is an increase of £96.7bn compared with August 2013. The figures should be a cause for concern, especially when stacked up against the position of Japan just before it slipped into its ‘lost decade', according to Neil Wi...