UK public finances in a 'vulnerable position' as deficit third largest among top European economies

5.7% of GDP

The UK budget deficit has hit 5.7% of GDP and is now the third highest among the 28 advanced European economies, according to the Office for Budget Responsibility.

This is around four percentage points higher than the average for advanced economies, according to the OBR's Fiscal risks and sustainability report. Looking at advanced economies worldwide, Britain's deficit came fifth, only behind Japan, Greece, Italy, France and the US, while government debt was the fourth highest among advanced European economies, and the sixth highest on a global level. UK budget in a bind as Reeves faces higher taxes or borrowing to cover Spending Review The rise in UK debt since 2010 has been in part due to two major global economic shocks, namely the Covid p...