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Britain's Public Debt is the amount in money the State owes to purchasers of UK bonds and gilts.
According to the Office for National Statistics, at the end of July 2012, the official Public Debt stood at 1 trillion and 32 billion pounds (£1.032 billion). This figure is equivalent to 65% of GDP (Gross Domestic Product).
However, if all financial sector intervention is calculated, such as the bailouts of the Royal Bank of Scotland, Lloyds Bank and Northern Rock to give just a few examples, the Public Debt is more than double this figure, namely 2 trillion and 311 billion pounds (£2.311 billion), equivalent to 147% of GDP.
Since May 2010, the official Public Debt has risen by £150 billion.
The cost of the Public Debt is the interest the State pays on the bonds and gilts it sells. In 2011, the Public Debt interest payments were £48.6 billion.
It is generally accepted by economic analysts that Britain's official Public Debt (currently 65% of GDP) could reach the equivalent of 100% of GDP by the year 2015.
The amount of money saved through spending cuts in 2011 was inferior to the increased cost of interest payments to service the Public Debt in the same year.
The conclusion is that, all the spending cuts the Government is introducing, are not even enough to cover the INTEREST on the official Public Debt.
To use a round and approximate figure, we the Public are paying around £50 billion a year on interest on the Public Debt. The Public Debt is increasing rapidly, and so too will the interest we all pay on this Debt.
This post has been composed based on extensive research with the aim of presenting economic facts on Britain's Public Debt.
Question: does anyone on the Forum believe Britain is on the road to economic recovery?