UK public sector debt 'to hit £180bn'

UK public sector debt levels are set to balloon to a staggering £180bn (€192bn) in the next financial year as the recession tightens its grip, experts warned today.

Ernst & Young’s influential ITEM Club group of economists forecasts the British government will need to borrow some 12.6% of GDP in 2009/10 to counter a plunge in tax receipts, a rapid surge in unemployment and a sharp increase in spending.