National Debt

Part of Oral Answers to Questions — Treasury – in the House of Commons at 12:00 am on 18th July 2017.

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Photo of Philip Hammond Philip Hammond The Chancellor of the Exchequer 12:00 am, 18th July 2017

Debt has climbed steadily since 2009 as a result of the high levels of deficit. Since 2010, we have reduced the deficit by three quarters, so national debt will now peak at just under 90% of GDP this year. As the OBR’s “Fiscal risks report” of last week makes clear, that level of debt—a legacy of Labour’s recession—leaves us vulnerable to future shocks, which is why the Government have committed to eliminating the deficit and reducing the level of debt as a share of GDP. As a result of the actions taken to bring the public finances back under control, the OBR now forecasts that debt will start falling next year and will be below 80% of GDP by 2021-22.