PBR: Debt to hit 78% of GDP

The UK's net debt will rise to 78% of GDP over the next five years, according to Alistair Darling.

Presenting his Pre-Budget Report to Parliament today, the Chancellor revealed borrowing will rise by more than expected in the current tax year. The total budget deficit for 2009/10 will hit £178bn, up from an initial forecast of £175bn made in April. Darling expects the deficit to begin falling in 2010/11, down to £140bn, though this is still £3bn higher than was predicted in this year's Budget. Net debt is currently 56% of GDP, rising to 65% next year and is expected to peak at 78% in 2014/15. The Chancellor says: "Debt will be in line with other G7 economies, even at its peak."...