MNI BRIEF: UK Debt/GDP At Highest Level Since 1961

The UK government's outstanding debt as a share of GDP rose to 99.8% in May, the highest level since fiiscal year 1960/61, the Office for National Statistics said Friday.

Excluding the Bank of England from the measure, the share of net debt to GDP dropped to 91.3%, 8.5% lower than the fully inclusive reading. On either reading, the figure underlines the parlous state of the public finances facing whichever party wins the July 4 election.

There have been some observers of the UK finances suggesting that Labour, currently well ahead in the opinion polls, could retarget PSND ex-BOE if it wins the election, possibly opening up some fiscal space for further borrowing (see MNI INTERVIEW: UK Likely To Restore BOE To Debt Calculation)