Domesday Live

Is the national debt too high?

UK debt is high by its own history, but not unusual among rich countries. What matters is whether it grows faster than the economy and what it costs to pay the interest. Interest now takes a noticeable share of what the government collects (see below), which is why many worry.

Why it happens

• Debt is what built up from borrowing. Each year the government borrows the gap between what it spends and what it collects. The total over the years is the debt. The 2008 crash, the pandemic and energy support all added to it.
• The cost matters as much as the size. Debt costs interest. When rates were near zero it was cheap to carry. Now rates are higher, and part of the debt is linked to inflation, so interest costs have risen.
• The size of the economy matters. Debt is shown as a share of the economy because a richer country can carry more. If the economy grows faster than debt, the share falls.