Britain’s national debt has risen faster than almost any other country in the world, according to new analysis of International Monetary Fund (IMF) data.
New figures from the IMF show that UK net government debt has increased from 30.4 per cent of GDP in 2001 to 95.5 per cent in 2026.
Among countries tracked by the IMF, only Botswana recorded a larger increase over the same period.
The findings have prompted fresh debate about the state of Britain’s public finances as the country moves closer to a national debt of £3 trillion.
Economists warn that high levels of debt leave governments more vulnerable to economic shocks, while increasing the amount of taxpayers’ money spent on interest payments rather than public services.
Supporters of higher public spending often point to major events such as the global financial crisis, the Covid pandemic and the energy shock following Russia’s invasion of Ukraine as reasons for rising debt levels.
However, those same challenges were faced by countries around the world. The IMF figures suggest Britain’s debt has increased more rapidly than almost every other nation despite experiencing many of the same global pressures.
The UK’s increase was second only to Botswana, whose public finances changed dramatically following the decline of its once-booming diamond industry.
The figures come as Chancellor Rachel Reeves attempts to maintain confidence in the public finances while balancing demands for increased spending across government departments.
Under the Government’s fiscal rules, debt must be projected to fall as a share of the economy by the fifth year of official forecasts.
Critics argue that Britain’s debt remains too high and warn that borrowing is expected to continue rising in the coming years.
Sir Mel Stride, the Shadow Chancellor, said ordinary families ultimately bear the cost of excessive debt through higher taxes and rising interest bills.
Paul Johnson, former director of the Institute for Fiscal Studies, warned that politicians have often avoided difficult conversations about how public spending commitments should be funded. He suggested governments have repeatedly delayed difficult decisions on borrowing, taxation and spending.
There are also growing concerns among economists about the reaction of financial markets to Britain’s debt levels.
As government borrowing increases, investors typically demand higher returns to lend money to the Treasury, increasing the cost of servicing the national debt.
Colin Ellis of Moody’s Analytics said Britain’s substantial debt burden is making financial markets increasingly sensitive to political uncertainty and fiscal policy decisions.
The debate comes at a time when ministers face pressure to increase spending on areas including defence, healthcare and infrastructure, while also seeking to stimulate economic growth.
With national debt expected to exceed £3 trillion, questions about how Britain restores its public finances are likely to remain at the centre of political debate for years to come.
