UK has ‘long and difficult journey’ to lower debt, finance minister says

LONDON (Reuters) – Britain faces a very difficult task to reverse the surge in public debt that took place during the COVID-19 pandemic, finance minister Jeremy Hunt said on Wednesday.

“I think it’s going to be a long and difficult journey, but I think it’s right that we try,” Hunt told parliament’s Treasury Committee during a hearing into last week’s annual budget.

Last week Britain’s Office for Budget Responsibility forecast that Hunt’s plans would lead to underlying public debt rising to 93.2% of gross domestic product in 2027/28 from 88.8% or 2.45 trillion pounds ($3.14 trillion) currently, before dropping to 92.9% in 2028/29.

Public debt, excluding public sector banks and the Bank of England, was 72.3% in the last full financial year before the start of the pandemic.

($1 = 0.7811 pounds)