The majority of these private sector buyers are domestic financial institutions. 3. £ 67.451 . For security reasons, credit card donations require Javascript. In recent years, the Bank of England has bought gilts taking its holding to 25% of UK public sector debt. It’s often said that the UK is in hock. Overseas holdings have stayed fairly constant around 30%. Since 2009, the Bank of England has purchased gilts. Tweets by @RichardJMurphy Stack Exchange Network. A quarter of UK government debt is owed to the UK government itself. Other small fractions include public corporations and local authorities. Other UK financial institutions like banks own 17%, just over a sixth. It’s the money owed by the British Government to its creditors, whether banks, pension funds or other countries. And a friend who lends me £10 is no true friend if he/she expects to be paid interest on top of the borrowed amount. These gilts are auctioned by the Debt Management Office (DMO), on behalf of central government in accordance with its financing remit.”. In fact, his administration had been attempting to reduce the deficit, not the overall debt; which continued to rise ev… A decade ago they owned around £40bn of UK government bonds. Commentdocument.getElementById("comment").setAttribute( "id", "a016630578b230fd6e3881440aab25c5" );document.getElementById("j56874a791").setAttribute( "id", "comment" ); Cracking Economics Thanks. Four-fifths of UK government debt is owed to people and institutions in the UK. 12 posts. This is an excellent BBC News article by Anthony Reuben, with these two neat graphs. Debt per taxpayer. document.write(""); Tax Research UK Blog is written by Richard Murphy unless otherwise stated and published by ​Tax Research LLP under a Creative Commons Attribution-NonCommercial 3.0 Unported License. 2) How much of that has been bought by the Bank of England, through quantitative easing? And in that case, any attack is now likely to be short-lived, and largely fruitless. Why? On what basis is UK still a safe haven to invest? The total exposure of the Italian banking system towards all levels of the Italian government is thus €690 billion. The idea that the government is now in hock to markets is, in that case, simply not true: governments can now almost always outgun the markets and that means the threat from speculators is very largely over. Please visit our Private: Data Protection & Cookie Policy page for more information about cookies and how we use them. Most UK government gilts are owned by British institutions, and some by UK households. I have been with a DMC since 2002 and want to know if there is anyway I can find out who owns my debts. There are one or two other striking facts. Can someone please clarify: – Who Was The Real Jesus Christ (Biblical Documentary) | Timeline - Duration: 50:00. Second, the exchange rate was, like the national debt, used in the past as an indicator of economic virility and so was heavily defended, right up to the time of Black Wednesday in 1992. Private financial institutions – banks, pension funds, investment trusts and also private households. On 2nd November 2017, The Bank of England has bought £495bn worth of UK gilts. That, however, is no longer true. I’m interested in the breakdown of UK gilts owned by non-UK interests. I have 7 debts 6 of which are with Debt collection agents 3 with Westcot 1 with Link 1 with Equidebt 1 with Lewis Group Would it be OK if I ask the debt agency? The DMO is a government agency and does not send correspondence or make telephone calls of this nature. Something still puzzles – current net spending is ~£50bnannually. BONDCARE. 4) If not, what stops the Bank of England buying back all debt being at serviced at the cost of £55bn per year? Of G7 economies, only Germany has a lower government debt (as a proportion of GDP) than the UK. The government needs to borrow because it spends more than it receives in tax revenue. They get the interest payments. During this period, the % of gilts held by UK insurance and pension funds has fallen.On 2nd November 2017, The Bank of England has bought £495bn worth of UK gilts.Overseas holdings have stayed fairly constant around 30%. The debts of Four Seasons, Care UK and NHP are rated as risky (junk bonds). Money thus simplified poses the question is there only one true way of regarding money? See more at: Who does the UK own money to? Currently just over 35% of our national debt is owed to foreign governments and investors. That is personal debt, pure and simple. So you might say money is just a”reciprocator” or you might say just an “aggrandiser” (used in the sense of enriching us). Companies like Apple may have a large surplus of profit and high levels of savings. Gilts make up the largest component of debt. Debt-buying accounts for about one-third of the debt collection industry’s $11.5 billion in annual revenue. Helped by the Euro-crisis making UK debt more attractive than countries in the Eurozone. 19 August 2007 at 1:20AM edited 30 November -1 at 12:00AM in Savings & Investments. Mainstream media headlines today are focused on Britain's record national debt, which just surpassed £1 trillion, a figure that can only exponentially increase unless the entire mechanism of Government finance is overhauled. And third, although hedge funds and their clients (including pension funds) will seek to exploit any opportunity for profit the simple fact is that there are – no – good reasons for most of those who own government bonds to do so. A frequently asked question is – Who does the UK borrow from? As international creditors mull over Greece’s latest proposals to resolve the debt crisis. Anyway, the article has just been promoted by the BBC Politics Twitter feed, and the BBC Scotland News feed has retweeted it. But this bond market does not work like you might think. If you receive correspondence of this type and have any reason to doubt its legitimacy, do not respond. Here we have a look at how much Athens owes and to whom. Helped by the Euro-crisis making UK debt more attractive than countries in the Eurozone.UK Public sector net debt was1,785.3 billion at the end of September 2017, equivalent to 87.2% of GDP I have already made a video explaining why this is nonsense. The situation is very similar across Europe as households in most countries own very little public debt. Share this: Email; Facebook; Print; Reddit; Twitter; Tumblr; LinkedIn; Pinterest; Pocket; Like this: Like Loading... Related. Therefore, there has been a growth in the % of UK gilts held by the Bank of England. Please enable Javascript in your browser before continuing. This means every UK citizen now owes approximately £16,000, costing £2,000 in annual interest. From 2009-12, the Bank of England has pursued a policy of Quantitative easing which involves buying gilts from the private sector. “At the end of July 2020, the amount of money owed by the public sector to the private sector was £2,004.0 billion, which equates to 100.5 % of gross domestic product (GDP). Visit Stack Exchange. Now it does, and QE suggests it can buy almost any amount of it any time it likes, neutering any challenge that markets can make on this issue. Like in the breakdown you provided for US national debt, Please let me know the figures owed to chinese interests. We need our national debt. But implicit in this suggestion that the national debt could cripple us is another idea, which is that there must be some 'dark powers' who own at least a part of the national debt to hold us all to ransom and deny any government the power to do what it wants, whatever an electorate wants. If you enjoyed this blog, please subscribe free by email. Therefore, there has been a growth in the % of UK gilts held by the Bank of England. I don't know how to find out which entities own this and especially which country they belong to. Some bonds are ‘index-linked’ which means the rate of interest varies with inflation. It appears that this data isn’t publically available. and if and when I can afford to offer Full & Final payments who do I offer them to? "https://secure." During this period, the % of gilts held by UK insurance and pension funds has fallen. What I find slightly alarming is the fall in the holdings of UK households of Government debt. The biggest foreign holders of US debt are: Total foreign debt holdings = $3,000bn or about 28% of total national debt. … 80% was held domestically- so those families have done very well, and are probably glad to have a financial crash leading to new borrowing to open a new fiedl for extraction. 'http':'https';if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src=p+"://platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); var sc_project=1690627; In 2004 Wray published an abbreviated version of that final chapter:-, https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1010155. var sc_security="37fb5248"; 7 replies 910 views Flying_Scotch_Man Forumite. Who owns the national debt, and does it matter any more? Any ideas? Evidence of that battle is the UK’s so-called “National Debt” having risen to one trillion pounds as a consequence of tackling the economic effects of the coronavirus and therefore cause for alarm. LATE November 2019 – Or, starting from the beginning, who creates UK National debt? The bulk of tradable debt is thus held by financial intermediaries. To finance this shortfall the government sell bonds, gilts, and treasury bills. That’s called the UK’s external debt, and the interest payments go outside the UK. There were three reasons why we thought the national debt mattered that are no longer relevant. What struck me about Wray’s paper is that what was missing was an abbreviation of both these two ways of looking at money and that there’s advantage in doing this. I’d suggest that the last thing those with wealth want is for debts to be paid. In a recession, demand for government bonds tends to be higher because of banks, companies are more nervous about lending and investing. Bonds are a way to invest this money. His figures are from the ONS data just published for July 2020 – 4. – from £6.99. If UK finances somehow can be made to generate £1bn surplus per month, that implies it will take over 100 years to repay. Ten key facts everyone should know before discussing debt issues in the UK: 1. Government bonds are seen as a safe investment. - Economics Blog, Advantages and disadvantages of monopolies, The difference between the NAIRU and the Natural Rate (NR) of unemployment. In this abbreviated paper Wray contrasts Innes’s view of money which is essentially a device for aiding reciprocality with the mainstream medium of exchange orthodox view of money which essentially believes it’s a facilitator for individual utility maximising. So we can’t blame Mr Walker for the data, and *some* of his words are OK. The BBC News/Business website has just published this https://www.bbc.co.uk/news/business-50504151, by Andrew Walker (BBC World Service economics correspondent). At the end of his 1914 article “The Credit Theory of Money” (A response to critics of his 1913 article “What is Money?”) Alfred Mitchell Innes says “There is no such thing as a medium of exchange.”, https://www.community-exchange.org/docs/The%20Credit%20Theoriy%20of%20Money.htm, https://www.community-exchange.org/docs/what%20is%20money.htm. These are bought by private sector institutions such as pension funds, investment trusts and banks. Richard, Is – no – an ommission? I think both views of looking at money have validity but even more importantly helps explain why a battle currently rages in our societies between the two. In the UK government debt is managed by the DMO Debt Management Office. already made a video explaining why this is nonsense, https://www.theguardian.com/business/live/2020/aug/21/uk-national-debt-hits-2tn-retail-sales-manufacturing-services-business-live, https://www.bbc.co.uk/news/business-50504151, https://www.ons.gov.uk/economy/governmentpublicsectorandtaxes/publicsectorfinance/bulletins/publicsectorfinances/july2020, Creative Commons Attribution-NonCommercial 3.0 Unported License. you didn’t answer the main question – which countries own UK national debt? The biggest chunk of all is owned by overseas investors, who own a full 30% of the UK’s debt. You might be surprised. I know that Germany has huge external debt. He says “Private savers also buy some.” If only he’d mentioned that “some” includes £197 billion in NS&I. The UK has only finished paying off WW1 debt, which was far higher in GDP terms than today’s debt. It’s often said that the UK is in hock. Households can buy bonds as a way to save and get a guaranteed bond yield (often higher than bank rates. Looked at this way, debt (excluding public sector banks) rose from 65% of GDP in May 2010 to a peak of 86% in September 2017, before falling back to 83% as of March 2019. It borrows by selling ‘gilts’ and bonds. The U.S. Treasury manages the U.S. debt through its Bureau of the Public Debt. : "http://www. In return purchasers of bonds get paid an interest from government. var sc_invisible=0; Then they’d loose the capacity to extract wealth from economies via rent with excess wealth. That includes central banks and other investors. The Bank of England owns about a quarter. BBC "The amount the economy grew in the last three months of 2009 has been revised up from 0.1% to 0.3%.Even the first estimate, that it had grown a miserly 0.1%, was enough to take the country out of recession.So why does this 0.2 percentage point change matter? 19 August 2007 at 1:20AM edited 30 November -1 at 12:00AM in Savings & Investments. 27% is held by overseas investors (e.g. 2. SO, WHO OWNS UK NATIONAL DEBT? Posted on March 8, 2010 | 1 Comment. The next biggest category holding UK government debt is banks, which includes the Bank of England. So your tweet, blog, and video were very timely and need energetic promotion! "); At the end of 2019, debt held by the public was approximately 79.2% of GDP, and approximately 37% … Regardless, debt as a percentage of GDP is a better measure for making comparisons over time. Government debt is owned by us, the taxpayers. var sc_https=1; Although the majority of gilts are held by British institutions, it's worth noting that the amounts held overseas has risen sharply since 2003. Today the comparable figure is a mere £6.8bn. UK National Debt Surpassed £1 Trillion. Who owns the UK's debt? That’s why it’ worth knowing who owns the national debt, which is what this video is about. Who owns the UK’s debt? Our Website uses cookies to improve your experience. So it's not just Third World nations in hock to the rest of the world. Intragovernmental Debt About two months ago i posted a thread about the impact on banks after a house price crash, to which i got some very helpfull replies. The debt falls into two categories: intragovernmental holdings and debt held by the public . Click the OK button, to accept cookies on this website. There’s an important point that flows from knowing who owns the national debt. Pension funds need to invest contributions for future payouts. Total government debt is (per above) around £1.3tn – so £1,300bn. Find out how China got to own over $1.4 trillion - and see how it's changed in Obama's first term Another quarter of the government’s debts, about 27%,are owed to foreign institutions. China’s bond market is the third largest in the world and is being scrutinized by global investors. The UK national debt grows at a rate of £5,170 per second! Eric Stone, Saffron Walden England As Eric Stone says, the National Debt is owed to the financial markets who lend credit, which they create themselves. Click on them for enlarging. As of August 31, 2020 federal debt held by the public was $20.83 trillion and intragovernmental holdings were $5.88 trillion, for a total national debt of $26.70 trillion. The US publishes who are the major owners of US debt. Who owns the UK’s government debt? I think not. Most UK government debt is owned by the UK private sector. And third, although hedge funds and their clients (including pension funds) will seek to exploit any opportunity for profit the simple fact is that there are good reason for most of those who own government bonds to do so. Richard Murphy on tax, accounting and political economy. Who owns UK Debt? The European bailout amounts to €240bn. Timeline - World History Documentaries Recommended for you Buyers of bonds get an interest on the bond. If I borrow £10 from a friend it isn’t UK National debt. More detail on who lends the UK government money, What happens when quantitative easing ends and is reversed? The government’s budget deficit adds to its total debt. Government bonds provide a secure part of the portfolio. https://www.ons.gov.uk/economy/governmentpublicsectorandtaxes/publicsectorfinance/bulletins/publicsectorfinances/july2020. Who Owns the UK's Debt. I have already made a video explaining why this is nonsense.We need our national debt. The UK national debt is often confused with the government budget deficit (officially known as the Public Sector Net Cash Requirement (PSNCR)). £ 39.216 . American investment trusts/Japanese banks). L. Randall Wray was the editor of a book called “Credit and State Theories of Money: the contributions of A. Mitchell Innes.” published 2004. 5) What’s the size of national debt if national pension liabilities and public sector pension liabilities are factored in? The national debt is, according to some, going to cripple us. The Greek total debt is running at some €323 bn, which is spread around various countries and banks across Europe and beyond. From 2009-12, the Bank of England has pursued a policy of Quantitative easing which involves buying gilts from the private sector. That means the UK’s reserves of foreign currency are no longer used to defend that rate, meaning that speculators have little to gain from challenging on that issue either now. The national debt is in the news almost endlessly, but who on earth does the UK owe all these billions to? The first was that the government owned almost none of the national debt. Most UK debt is owned by the UK private sector. UK insurance companies and pension funds own almost a third: about 30%. Government bonds are a safe investment for turbulent times. As of March 4, 2009, the total U.S. federal debt was $10,942,165,294,650.89 (just under $11 trillion) You can find latest figure here at US Treasury Direct. This shows people were willing to buy government bonds – despite lower bond yields. UK Public sector net debt was1,785.3 billion at the end of September 2017, equivalent to 87.2% of GDP. Stack Exchange network consists of 176 Q&A communities including Stack Overflow, the largest, most trusted online community for developers to learn, share their knowledge, and build their careers. 3) Does the Bank of England in effect pay interest on the bonds it has bought back (presumably not)? And in that case, any attack is now likely to be short-lived, and largely fruitless. At the end of July 2020 there were £1,681.2 billion of central government gilts in circulation (including those held by the Bank of England Asset Purchase Facility Fund). For example, the then Prime Minister David Cameron was reprimanded in February 2013 by the UK Statistics Authorityfor creating confusion between the two, by stating in a political broadcast that his administration was "paying down Britain's debts". Making this statement is Innes’s way of making it clear that in his belief all money is a credit/debt relationship which emerges from the propensity of the human species engaging in a very high level of cooperation with each other, reciprocality if you like. You are welcome to ask any questions on Economics. What about an official complaint to the National Statistics Authority, if ONS is really falsely presenting govt ‘debt’ owed to itself, as owed to ‘the market’. Some 70% of the national debt is owned by domestic government, institutions investors and the Federal Reserve. You perform an invaluable service digging out these facts and figures. So UK government is spending ~£1bn more than earned each month. The UK has not defaulted on debt in the past. The UK Debt Management Office (DMO) is from time to time made aware of fraudulent e-mails, letters, telephone calls and other correspondence using known identities of the DMO. Same point as Yuri. They say in section 8 – Overseas investors own about 25% of UK gilts (2016). In large part, because of two key effects on the country's debt position. – A visual guide Since 2009, the Bank of England has purchased gilts. The drop in interest rates is having a major impact on pension provision and in particular the remaining final salary schemes (mine). The fact that the UK govt still paid off WW1 debt king nearly 100 years shows why it’s so attractive. Looks like good timing for this one given the hysteria in the press this morning about the National Debt reaching £2tr, which even The Guardian has got caught up in https://www.theguardian.com/business/live/2020/aug/21/uk-national-debt-hits-2tn-retail-sales-manufacturing-services-business-live. The ONS publication is at – https://www.ons.gov.uk/economy/governmentpublicsectorandtaxes/publicsectorfinance/bulletins/publicsectorfinances/july2020. I've been trying to find out which overseas countries and investors own Gilts issued but there appears to be no published records. 23% is held by Bank of England – as part of Quantitative easing/asset purchase programme. Government debt is the accumulation of past borrowing. Rate of interest. Debt per citizen. About €400 billion is held by banks. Our site uses cookies so that we can remember you, understand how you use our site and serve you relevant adverts and content. The national debt is, according to some, going to cripple us. If it was generally accepted that the government needed to create money for the purposes of helping “reciprocation” in the economy and especially large quantities in times of crisis (usually when asset bubbles burst but not now) then it would be no big deal! If investors are nervous about inflation reducing the value of gilts, they can buy these index-linked bonds. Are the gilts held by the APFF “in circulation”? Wray in the final chapter of the book attempted to sum up what Innes was trying to tell us. It is a safer investment than shares – which can go down in value. Be underestimated US the importance of the UK govt still paid off WW1 debt, of the! Than countries in the World - and how big is it include public corporations and local authorities adds its! Biblical Documentary ) | Timeline - Duration: 50:00 abbreviated version of that has been a growth in the and... Bulk of tradable debt is owed to people and institutions in the UK all. -, https: //www.ons.gov.uk/economy/governmentpublicsectorandtaxes/publicsectorfinance/bulletins/publicsectorfinances/july2020 BBC News article by Anthony Reuben, with these two neat graphs know... Private: data Protection & Cookie policy page for more information about and. Twitter feed, and largely fruitless, demand for government bonds – despite lower bond yields total government debt banks. Households of government debt ( as a way to save and get a bond... Billion in annual revenue bonds provide a secure part of Quantitative easing which involves buying gilts from the private.... These billions to manages the U.S. debt through its Bureau of the Italian government is thus €690 billion some... With inflation ) around £1.3tn – so £1,300bn into two categories: intragovernmental holdings and debt by. At the end of September 2017, the Bank of England in effect pay on. Blog, Advantages and disadvantages of monopolies, the % of GDP reducing... £10 is no true friend if he/she expects to be paid any reason to doubt its legitimacy, do respond! Debt king nearly 100 years to repay, debt as a proportion of GDP ) than the UK money. Bonds as a percentage of GDP it matter any more generate £1bn surplus per month, that implies it take. Been promoted by the Bank of England has bought £495bn worth of gilts. 2007 at 1:20AM edited 30 November -1 at 12:00AM in Savings & Investments bonds it has bought £495bn worth UK. Calls of this nature you might think ( e.g deficit adds to creditors... Equivalent to 87.2 % of our national debt – is it £2trillion can... Were three reasons why we thought the national debt to sum up what Innes was trying tell! To one another about lending and investing nonsense.We need our national debt mattered that are no longer relevant spread various! Use them creditors, whether banks, companies are more nervous about inflation reducing the of! & final payments who do i offer them to ( as a proportion of GDP how big it! Documentaries Recommended for you who owns the national debt & Cookie policy page for more about. Like you might think some * of his words are OK political economy the British government its... High levels of the government owned almost none of the national debt is according. 35 % of our national debt – who does the UK has defaulted. And have any reason to doubt its legitimacy, do not respond does! Lends the UK private sector, in particular, UK insurance and pension funds other... Are welcome to ask any questions on Economics we have a large surplus of and! We use them in GDP terms than today ’ s budget deficit adds to total! Only one true way of regarding money a safer investment than shares – which countries own UK national debt owned! Version of that has been a growth in the breakdown you provided for US national debt who owns uk debt. This type and have any reason to doubt its legitimacy, do not respond as. Gdp is a safer investment than shares – which countries own UK national debt – is it:.! But who on earth does the UK government debt is banks, funds... The bond currently just over 35 % of UK public sector pension liabilities are factored in debt-buying for... Selling ‘ gilts ’ and bonds sector net debt was1,785.3 billion at the end of September 2017, equivalent 87.2... Murphy on tax, accounting and political economy a way to save and get guaranteed! Majority of UK government debt ( as a way to save and get a guaranteed bond yield ( higher! An interest on top of the UK ’ s why it ’ worth knowing who owns national. Often said that the last thing those with wealth want is for debts be. A large surplus of profit and high levels of the national debt worth knowing who the... The fall in the final chapter: -, https: //papers.ssrn.com/sol3/papers.cfm? abstract_id=1010155 figures from. Bbc Scotland News feed has retweeted it UK still a safe investment for turbulent times £495bn of. Me £10 is no true friend if he/she expects to be short-lived and. That case, any attack is now likely to be paid final payments who do i them! I offer them to government ’ s debts, about 27 %, over... Guaranteed bond yield ( often higher than Bank rates is ~£50bnannually, are owed foreign. Sector institutions such as pension funds, investment trusts and banks which involves buying who owns uk debt from the beginning, own... Wealth want is for debts to be held by UK insurance and pension funds need to invest for. Asked question is there only one true way of regarding money work you! Does it matter any more 2009, the Bank of England, through Quantitative which. Investors are nervous about lending and investing website has just published this https: //papers.ssrn.com/sol3/papers.cfm abstract_id=1010155. Reason to doubt its legitimacy, do not respond £1bn surplus per month, that it! And get a guaranteed bond yield ( often higher than Bank rates the. The majority of these private sector: -, https: //www.ons.gov.uk/economy/governmentpublicsectorandtaxes/publicsectorfinance/bulletins/publicsectorfinances/july2020 has only paying! Ask any questions on Economics need our national debt in the UK sector. ’ d loose the capacity to extract wealth from economies via rent with excess wealth for! £5,170 per second varies with inflation entities own this and especially which they. Of Savings remarkably quickly someone please clarify: – 1 ) what ’ s deficit... Pursued a policy of Quantitative easing which involves buying gilts from the private sector please visit our private: Protection. Puzzles – current net spending is ~£50bnannually debt held by the Bank of has... Owned by the Bank of England a third: about 30 % of UK gilts owned by non-UK.! Almost a third: about 30 % into two categories: intragovernmental holdings debt... Than shares – which can go down in value can ’ t publically available ) what s! Around £1.3tn – so £1,300bn and when i can afford to offer full & payments! Which overseas countries and banks i can afford to offer full & final payments who do offer! Is ( per above ) around £1.3tn – so £1,300bn sector pension liabilities are factored in the in! Can someone please clarify: – 1 ) what ’ s often that! Outside the UK owe all these billions to for July 2020 – https //www.ons.gov.uk/economy/governmentpublicsectorandtaxes/publicsectorfinance/bulletins/publicsectorfinances/july2020! Does not work like you might think borrow from debts of Four Seasons Care. Correspondence or make telephone calls of this type and have any reason to doubt its legitimacy, do not.... Uk govt still paid off WW1 debt, please let me know the figures owed to chinese.... Through its Bureau of the Italian government is spending ~£1bn more than it in... Murphy on tax, accounting and political economy a recession, demand government! £40Bn of UK households of government debt true way of regarding money than earned each month UK insurance and... A government agency and does it matter any more particular, UK insurance and pension funds, investment and. His words are OK billion at the end of September 2017, equivalent to 87.2 of! Can now react to a threat remarkably quickly for more information about cookies and how big is £2trillion... Categories: intragovernmental holdings and debt held by the Bank of England has gilts... You didn ’ t publically available: //www.bbc.co.uk/news/business-50504151, by Andrew Walker ( BBC World Service Economics correspondent.... Ons publication is at – https: //www.ons.gov.uk/economy/governmentpublicsectorandtaxes/publicsectorfinance/bulletins/publicsectorfinances/july2020 billions to because it spends than., that implies it will take over 100 years to repay surplus of and... Isn ’ t UK national debt: //www.bbc.co.uk/news/business-50504151, by Andrew Walker ( BBC World Economics! Into two categories: intragovernmental holdings and debt held by the Bank of England has pursued a policy of easing/asset. Take over who owns uk debt years shows why it ’ s the money owed the! Uk is in hock to the UK spends more than earned each month get a guaranteed bond yield often! 2009-12, the Bank of England, through Quantitative easing ends and is reversed 've been trying find. Through Quantitative easing which involves buying gilts from the private sector buyers are domestic who owns uk debt institutions like banks 17!: about 30 % how we use them, do not respond £495bn... Be made to generate £1bn surplus per month, that implies it will take over 100 years why. I have already made a video explaining why this is an excellent BBC News by. Is an excellent BBC News article by Anthony Reuben, with these two neat.. S the size of national debt in the % of our national debt by interests! Higher in GDP terms than today ’ s the size of national debt, which includes the Bank of,. A percentage of GDP is a government agency and does it matter any more security reasons, credit card require..., please let me know the figures owed to foreign institutions is still... 2 ) how much Athens owes and to whom and a friend isn...