Bankrupt Britain trades on goodwill

With Government borrowing at a record high and with no sign of public finances being brought back under control, Britain needs to be vigilant. It's only a matter of time before the goodwill bubble of foreign investment bursts.

Britain is slipping ever deeper into the red. Government borrowing hit £13.5bn in June, the highest figure on record for that month. In the first three months of the fiscal year, borrowing doubled year-on-year to £41bn (£700 for every citizen) as tax revenues crumbled by 10% faster than the Budget anticipated and social security spending rose. Government debt is now a record £799bn 56.6% of GDP.

What the commentators said

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.