Government debt in the United Kingdom reached over 2.9 trillion British pounds in 2023/24, compared with 1.9 trillion pounds in 2019/20. Although the amount of public sector debt has been rising for some time, there was a noticeable uptick between 2019/20 and 2020/21, when government spending increased substantially due to the economic impact of the COVID-19 pandemic.

By the end of the UK's job retention scheme, which ran from April 2020, to September 2021, approximately 11.7 million jobs, from 1.3 million different employers, were furloughed in the United Kingdom. The day with the most jobs furloughed at once was May 8, 2020, when 8.86 million jobs were on the job retention scheme. The scheme, introduced in response to the economic damage caused by the Coronavirus (COVID-19) pandemic, covered 80 percent of an employees' usual monthly wage, up to 2,500 British pounds a month. How much did the scheme cost? The UK government spent approximately 70 billion British pounds on the job retention scheme. Due to spending commitments such as this, as well as depressed revenue sources, UK government finances took a severe hit in the 2020/21 financial year. Government borrowing was approximately 333 billion pounds in 2020/21, while government debt as a share of GDP shot up from 80.3 percent in 2018/19, to 96.5 percent by 2020/21. Getting this debt down has proven difficult in subsequent financial years, with high inflation, war in Ukraine, and Cost of Living Crisis putting even more pressure on public finances. Popular scheme may not be enough to save Sunak The current Prime Minister, Rishi Sunak, held the position of Chancellor of the Exchequer throughout the duration of the furlough scheme. While this scheme and Sunak himself were popular for much of that time, Sunak has since seen his popularity tumble. Shortly after succeeding Liz Truss as Prime Minister in October 2021, Sunak was seen by 30 percent of people as being the best person for his job, while his net favorability rating was around -19 percent. By May 2024, just before he announced the 2024 general election, just 19 percent of people thought he made the best Prime Minister, and his net favorability rating had fallen to -51 percent.

The government of the United Kingdom borrowed approximately 1.9 percent worth of its GDP in the 2023/24 financial year, compared with three percent in 2022/23. In 2020/21, government borrowing reached 11.6 percent of GDP, due to increased financial support to public services during the COVID-19 pandemic, combined with reduced revenue because of societal lockdowns.

European Union Gross Debt: General Government: EU 27 excl UK data was reported at 14,479,047.500 EUR mn in Sep 2024. This records an increase from the previous number of 14,304,750.800 EUR mn for Jun 2024. European Union Gross Debt: General Government: EU 27 excl UK data is updated quarterly, averaging 9,610,038.000 EUR mn from Mar 2000 (Median) to Sep 2024, with 99 observations. The data reached an all-time high of 14,479,047.500 EUR mn in Sep 2024 and a record low of 5,247,691.900 EUR mn in Dec 2000. European Union Gross Debt: General Government: EU 27 excl UK data remains active status in CEIC and is reported by Eurostat. The data is categorized under Global Database’s European Union – Table EU.F006: Eurostat: General Government Debt: ESA 2010 (Quarterly). [COVID-19-IMPACT]

The number of times a person in the United Kingdom used a credit card for payments declined by roughly 20 percent in 2020 but nearly recovered by 2021. Unlike the same figure for debit cards, the recorded credit payments in 2020 were lower than in the years leading up to COVID-19. This coincides with a trend in the UK of paying off credit card debt during lockdown.

In September 2023, the national debt of the United States had risen up to 33.17 trillion U.S. dollars. The national debt per capita had risen to 85,552 U.S. dollars in 2021. As represented by the statistic above, the public debt of the United States has been continuously rising.

U.S. public debt Public debt, also known as national and governmental debt, is the debt owed by a nations’ central government. In the case of the U.S., national debt is owed by the federal government to Treasury security holders. Generally speaking, government debt increases with government spending, and can be decreased through taxes. During the COVID-19 pandemic, the U.S. government increased spending significantly to finance virus infrastructure, aid, and various forms of economic relief.

International public debt

Venezuela leads the global ranking of the 20 countries with the highest public debt in 2021. In relation to the Gross Domestic Product (GDP), Venezuela's public debt amounted to around 306.95 percent of GDP. Eritrea was ranked fifth, with an estimated debt of 170 percent of the Gross Domestic Product.

The national debt of the United Kingdom is forecasted to grow from 87 percent in 2022 to 70 percent in 2027, in relation to the Gross Domestic Product. These figures include England, Wales, Scotland as well as Northern Ireland.

Greece had the highest national debt among EU countries as of the 4th quarter of 2020 in relation to the Gross Domestic Product. Germany ranked 13th in the EU, with its national debt amounting to 69 percent of GDP in the same time period.

Tuvalu was one of the 20 countries with the lowest national debt in 2021 in relation to the GDP, while Macao had an estimated level of national debt of zero percent, the lowest of any country. The data refer to the debts of the entire state, including the central government, the provinces, municipalities, local authorities and social insurance.

Advani, Hughson and Tarrant (2021) model the revenue that could be raised from an annual and a one-off wealth tax of the design recommended by Advani, Chamberlain and Summers in the Wealth Tax Commission’s Final Report (2020). This deposit contains the code required to replicate the revenue modelling and distributional analysis. The modelling draws on data from the Wealth and Assets Survey, supplemented with the Sunday Times Rich List, which we use to implement a Pareto correction for the under-coverage of wealth at the top.

Around the world, the unprecedented public spending required to tackle COVID-19 will inevitably be followed by a debate about how to rebuild public finances. At the same time, politicians in many countries are already facing far-reaching questions from their electorates about the widening cracks in the social fabric that this pandemic has exposed, as prior inequalities become amplified and public services are stretched to their limits. These simultaneous shocks to national politics inevitably encourage people to 'think big' on tax policy.

Even before the current crisis there were widespread calls for reforms to the taxation of wealth in the UK. These proposals have so far focused on reforming existing taxes. However, other countries have begun to raise the idea of introducing a 'wealth tax'-a new tax on ownership of wealth (net of debt). COVID-19 has rapidly pushed this idea higher up political agendas around the world, but existing studies fall a long way short of providing policymakers with a comprehensive blueprint for whether and how to introduce a wealth tax.

Critics point to a number of legitimate issues that would need to be addressed. Would it be fair, and would the public support it? Is this type of tax justified from an economic perspective? How would you stop the wealthiest from hiding their assets? Will they all simply leave? How can you value some assets? What happens to people who own lots of wealth, but have little income with which to pay a wealth tax? And if wealth taxes are such a good idea, why have many countries abandoned them?

These are important questions, without straightforward answers. The UK government last considered a wealth tax in the mid-1970s. This was also the last time that academics and policymakers in the UK thought seriously about how such a tax could be implemented. Over the past half century, much has changed in the mobility of people, the structure of our tax system, the availability of data, and the scope for digital solutions and coordination between tax authorities. Old plans therefore cannot be pulled 'off the shelf'.

This project will evaluate whether a wealth tax for the UK would be desirable and deliverable. We will address the following three main research questions:

(1) Is a wealth tax justified in principle, on economic or other grounds? (2) How should a wealth tax be designed, including definition of the tax base and solutions to administrative challenges such as valuation and liquidity? (3) What would be the revenue and distributional effects of a wealth tax in the UK, for a variety of design options and at specified rates/thresholds?

To answer these questions, we will draw on a network of world-leading exports on tax policy from across academia, policy spheres, and legal practice. We will examine international experience, synthesising a large body of existing research originating in countries that already have (or have had) a wealth tax. We will add to these resources through novel research that draws on adjacent fields and disciplines to craft new solutions to the practical problems faced in delivering a wealth tax. We will also review common objections to a wealth tax.

These new insights will be published in a series of 'evidence papers' made available directly to the public and policymakers. We will also publish a final report that states key recommendations for government and (if appropriate) delivers a 'ready to legislate' design for a wealth tax. We will not recommend specific rates or thresholds for the tax. Instead, we will create an online 'tax simulator' so that policymakers and members of the public can model the revenue and distributional effects of different options. We will also work with international partners to inform debates about wealth taxes in other countries.

The government of the United Kingdom borrowed approximately 121.9 billion British pounds in the 2023/24 financial year. In 2020/21, government borrowing was over 353 billion pounds, due to increased financial support to public services during the COVID-19 pandemic, combined with reduced revenue due to the lockdowns.

According to Cognitive Market Research, the global Revenue Based Financing market size will be USD 2985.2 million in 2024. It will expand at a compound annual growth rate (CAGR) of 61.80% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 1194.08 million in 2024 and will grow at a compound annual growth rate (CAGR) of 60.0% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 895.56 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 686.60 million in 2024 and will grow at a compound annual growth rate (CAGR) of 63.8% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 149.26 million in 2024 and will grow at a compound annual growth rate (CAGR) of 61.2% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 59.70 million in 2024 and will grow at a compound annual growth rate (CAGR) of 61.5% from 2024 to 2031.
The healthcare industry is the fastest-growing category in the Revenue-Based Financing market. The rising demand for healthcare services, especially after the global pandemic, has led to accelerated growth within the sector

Market Dynamics of Revenue Based Financing Market

Key Drivers for Revenue Based Financing Market

Increased Demand for Flexible Capital to Boost Market Growth

In the Revenue-Based Financing Market, one of the most significant drivers is the growing demand for flexible capital solutions among startups and small businesses. Unlike traditional financing methods that often require fixed repayments regardless of a company’s cash flow, revenue-based financing allows businesses to repay their investors based on their monthly revenues. This flexibility is particularly appealing to entrepreneurs who face seasonal fluctuations or unexpected market challenges. By aligning repayment schedules with revenue performance, businesses can manage their cash flow more effectively, reducing the financial burden during lean periods and fostering sustainable growth. This adaptability not only enhances the appeal of revenue-based financing but also empowers businesses to make strategic investments that can drive long-term success without the fear of crippling debt. For instance, in the UK, the government launched the future fund scheme on May 20, 2020, which offers convertible loans to startups based on their revenue

Increasing Adoption of Digital Platforms and Fintech Solutions to Drive Market Growth

The surge in digital platforms and fintech solutions is another key driver in the Revenue-Based Financing market. With advancements in technology, fintech companies have made it easier for businesses to access funding through online platforms, streamlining the application and approval processes. Digital platforms also provide investors with detailed insights into business performance, facilitating better decision-making and risk management. The scalability and transparency offered by these platforms have accelerated the adoption of RBF, making it a popular choice among tech-driven startups and e-commerce businesses looking for quick and hassle-free funding solutions.

Restraint Factor for the Revenue Based Financing Market

High Cost of Capital, will Limit Market Growth

One significant restraint in the Revenue-Based Financing (RBF) market is the high cost of capital associated with this financing model. While RBF provides flexibility in repayment structures, the overall cost can be higher than traditional loans. Investors often charge higher fees or revenue percentages in exchange for the lower risk they assume. For startups and small businesses with limited profit margins, this elevated cost can strain their financial resources and deter them from choosing RBF over other funding options. Consequently, the perception of RBF as a more expensive alternative may hinder its widespread adoption among potential borrowers.

Impact of Covid-19 on the Revenue Based Financing Market

The COVID-19 pandemic has significantly impacted the Revenue-Based Financing Market, catalyzing both challenges and opportunities for businesses seeking flexible capital solutions. As many startups faced unprecedented financial pressures due to lockdowns and ...

In December 2024, the personal saving rate in the United States amounted to 3.8 percent. That was slightly lower figure than a year earlier. The personal saving rate is calculated as the ratio of personal savings to disposable personal income. Within the topic of personal savings in the U.S., there are different goals and reasons for saving. What are personal savings? Saving refers to strategies of accumulating capital for future use by either not spending a part of one’s income or cutting down on certain costs. Saved money may be preserved as cash, put on a deposit account, or invested in various financial instruments. Investing usually incorporates some level of risk which means that part of the invested money can be gone. An example of a relatively safe investment would be saving bonds, such as the debt securities issued by the U.S. Department of the Treasury. Saving trends in the U.S. and abroad Looking at the personal saving rate in the United States throughout the past decades, it can be observed that savings had been decreasing until the mid-2000s, and they increased after the 2008 financial crisis. Still, the largest savings rates were reached in 2020 and 2021. The reason for that increase in the savings rate that year might be related to the measures to contain the COVID-19 pandemic. The value of personal savings in the United Kingdom has also followed a similar trend. Although events like the COVID-19 pandemic may have affect many countries in a similar way, the ability to save, as well as the average savings as a share of personal income across countries can vary significantly depending on multiple factors affecting each territory.

Abstract copyright UK Data Service and data collection copyright owner.The Opinions and Lifestyle Survey (formerly known as the ONS Opinions Survey or Omnibus) is an omnibus survey that began in 1990, collecting data on a range of subjects commissioned by both the ONS internally and external clients (limited to other government departments, charities, non-profit organisations and academia).Data are collected from one individual aged 16 or over, selected from each sampled private household. Personal data include data on the individual, their family, address, household, income and education, plus responses and opinions on a variety of subjects within commissioned modules. The questionnaire collects timely data for research and policy analysis evaluation on the social impacts of recent topics of national importance, such as the coronavirus (COVID-19) pandemic and the cost of living, on individuals and households in Great Britain. From April 2018 to November 2019, the design of the OPN changed from face-to-face to a mixed-mode design (online first with telephone interviewing where necessary). Mixed-mode collection allows respondents to complete the survey more flexibly and provides a more cost-effective service for customers. In March 2020, the OPN was adapted to become a weekly survey used to collect data on the social impacts of the coronavirus (COVID-19) pandemic on the lives of people of Great Britain. These data are held in the Secure Access study, SN 8635, ONS Opinions and Lifestyle Survey, Covid-19 Module, 2020-2022: Secure Access. From August 2021, as coronavirus (COVID-19) restrictions were lifting across Great Britain, the OPN moved to fortnightly data collection, sampling around 5,000 households in each survey wave to ensure the survey remains sustainable. The OPN has since expanded to include questions on other topics of national importance, such as health and the cost of living. For more information about the survey and its methodology, see the ONS OPN Quality and Methodology Information webpage.Secure Access Opinions and Lifestyle Survey dataOther Secure Access OPN data cover modules run at various points from 1997-2019, on Census religion (SN 8078), cervical cancer screening (SN 8080), contact after separation (SN 8089), contraception (SN 8095), disability (SNs 8680 and 8096), general lifestyle (SN 8092), illness and activity (SN 8094), and non-resident parental contact (SN 8093). See Opinions and Lifestyle Survey: Secure Access for details. Main Topics:Each month's questionnaire consists of two elements: core questions, covering demographic information, are asked each month together with non-core questions that vary from month to month. The non-core questions for this month were: Investment Income (Module 7a): this module was asked to discover how much interest, tax exempt or tax deducted, respondents earn on money kept in building society and bank accounts. Includes questions about TESSAs. GP Accidents (Module 78n): this module asked about accidents the respondent had had where help was sought that could have involved a doctor e.g. doctor's surgery, hospital. Expectation of House Price Changes (Module 137): this module asks respondents' views on changes to house prices in the next year and next five years. The module is only asked of HOH or spouse in England and Wales. Private Debt Collection (Module 140): this module assesses respondents views on the use of private debt collectors by the Benefits Agency and how this would differ from the existing use of their own debt collectors. Active for Life (Module 141): this module is only asked in England and evaluates the effectiveness of a publicity campaign to promote the idea that taking moderate physical exercise for 30 minutes a day, 5 days a week, is good for your health. Employees Working Practices (Module 142): this module is only asked of current employees. The module asks about aspects of work including method of payment/working conditions, opportunities for promotion, flexible working, autonomy and influence. Multi-stage stratified random sample Face-to-face interview

Of the largest economies by GDP, the United States saw the sharpest fall in absolute terms for 10-year government bond yields due to the coronavirus (COVID-19) pandemic. From a level of 1.51 percent in January 2020, yields on 10-year government bonds fell to 0.65 percent by April 2020, and had further fallen to 0.53 percent by July 2020 before starting to recover towards the end of the year. Conversely, countries that went into 2020 with already low bond yields like Japan, Germany and France actually saw a small increase in March 2020 - although these already low yields mean that these small changes are significant in relative terms. As of December 2024, the countries with the highest 10-year yields are the United Kingdom, the United States and Australia with 4.66, 4.54 and 4.46 percent, respectively.

The gross domestic product (GDP) growth rate of all major economies included except China was negative in 2020 following the COVID-19 pandemic. Growth rates were positive again in 2021, but stagnated in some countries in 2023 amid high inflation rates. What does GDP measure? GDP is the sum of all consumption, investment, government spending, and net exports in an economy. As such, different things drive the growth of each of these countries. Germany benefits from a high value of net exports, also known as its trade balance. Drawbacks of GDP growth as a metric GDP measures growth, but it does not capture welfare gains correctly in many cases. For example, carbon dioxide emissions often go hand in hand with a growing GDP. These emissions are from industry, such as coal power plants, or consumption, such as driving cars, but GDP does not measure the damage from these activities. Also, national debt is not incorporated into GDP.