As we all know the recession has played havoc with the UK economy, affecting unemployment, house prices, rates, inflation and GDP. It has now been revealed that from January 2009 to May 2009 public borrowing has reached nearly £20 billion, a record high, and in the last two months alone more than £30 billion has been built up making the total government debt around £774 billion (£150 billion more than this time last year).
No doubt, political debates will soon follow to resolve this issue and it will look probable that cuts will have to be made to bring the budget back into balance. In April’s budget Alistair Darling warned that the figure for this year could reach up to as much as £175 billion, adding to the latest news that unemployment figures are now at a 12 year high with the recession hitting the younger generation hard with over 16% falling into the unemployment category.
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