UK government debt has reached 100% of GDP for the first time in 60 years, a milestone viewed negatively in the press. However, this level of debt is not inherently problematic. The obsession with fiscal responsibility and reducing national debt through austerity reflects outdated economic orthodoxy aimed at shrinking the state. Investing in public services while managing debt can stimulate economic growth. Countries like Japan have higher debt-to-GDP ratios without crisis. The real challenge is an ageing population, which strains finances and necessitates bold solutions like increased immigration to expand the workforce. Immigration is essential to support rising welfare costs. Borrowing to invest in growth is fiscally responsible and crucial for the UK's economic future, avoiding unnecessary austerity.
