{"id":49840,"date":"2020-05-15T09:42:15","date_gmt":"2020-05-15T08:42:15","guid":{"rendered":"https:\/\/www.taxresearch.org.uk\/Blog\/?p=49840"},"modified":"2020-05-15T10:26:32","modified_gmt":"2020-05-15T09:26:32","slug":"uk-government-debt-some-facts","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2020\/05\/15\/uk-government-debt-some-facts\/","title":{"rendered":"UK government debt: some facts"},"content":{"rendered":"

The House of Commons Library is a much overlooked and valuable source of information. When I was looking for data on a related issue this morning I came across a briefing<\/a> it had prepared this year in government debt. The following tables come from it.<\/p>\n

What most people don't realise is how long it is before much of UK government debt has to be repaid. This is the age profile:<\/p>\n

\"\"<\/p>\n

You can't make a debt crisis out of debt that is, on average, that old in anything like a hurry. So people need to calm down about that issue.<\/p>\n

Second, there's the question of who owns the debt:<\/p>\n

\"\"<\/p>\n

23% of government debt is owned by the government.<\/p>\n

28% is held overseas. The rest (almost half) is held by organisations that need it for regulatory purposes and functional need in the main, so they won't be selling.<\/p>\n

And historically, the overseas sector has been keen to save in the UK. Whenever anyone talks of a debt crisis coming it might be good to ask who is going to create it? Especially when the government can increase its holding whenever it wishes.<\/p>\n

Then there's the question of the interest rate:<\/p>\n

\"\"<\/p>\n

But before you think that's high, it's because so much of the debt is old. This is the trend:<\/p>\n

\"\"<\/p>\n

That right-hand end is called 'next to nothing' - it's about 0.2% right now.<\/p>\n

In other words, the cost of new debt is very low, and will remain that way.<\/p>\n

So before anyone says 'debt crisis' please give them some facts.<\/p>\n","protected":false},"excerpt":{"rendered":"

The House of Commons Library is a much overlooked and valuable source of information. When I was looking for data on a related issue this
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