£1tn wiped off public sector since 2008 leaves UK public finances among weakest in world

An IMF report has concluded that the UK’s public finances are some of the worst on the planet.

Since the banking crash of 2008 nearly £1tn has been slashed from the public sector, which is 50% of GDP.

Bailing out the banking sector and public sector pension liabilities hugely contributed to the poor state of the UK’s public finances.

Of 31 countries only Portugal was in a weaker position. The Gambia, Uganda and Kenya rank above the UK.

Norway ranked as the most secure nation due to income from oil exploration, which has been saved for future generations.

The report said: “The United Kingdom balance sheet expanded massively during the crisis. Most of the expansion in the balance sheet was the result of large-scale financial sector rescue operations that resulted in reclassification of the rescued private banks into the public sector. [This] increased (non–central bank) public financial corporation liabilities from zero in 2007 to 189% of GDP in 2008, with similar [falls] in financial assets.”

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