Website: www.peoplescharity.co.uk

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People’s Charity 

Unit 15 A&B

Glanaber Trading Estate

Rhyl

Denbighshire

LL18 2PL

Registered Charity No: 1201376

                                                              Updated April 2023 

Debt History

We’ve done some research, and here's a brief overview of the history of debt in the UK for both Government and Personal debts.

Government debt in the UK can be traced back to the late 17th century, when the government began issuing bonds to raise money for wars and other expenses. These bonds, known as "gilts," were backed by the full faith and credit of the government, and were considered a safe and reliable investment.

Over time, the amount of government debt in the UK has fluctuated depending on economic conditions and government policies. During times of war or economic crisis, the government has often had to borrow heavily to fund its activities. For example, during World War II, the UK accumulated a large amount of debt to finance its military efforts.

As of 2021, the UK government's debt stands at over £2 trillion, or around 97% of GDP. This is largely due to the COVID-19 pandemic, which has led to increased government spending on healthcare, business support, and other measures.

Personal debt in the UK has a much longer history, dating back to the early modern period. In the 18th and 19th centuries, many people in the UK relied on credit to finance their daily lives, as they did not have access to formal banking services. This often led to high levels of debt and financial instability.

In the 20th century, the availability of credit expanded significantly, as banks and other financial institutions began offering loans and credit cards to a wider range of consumers. This led to a sharp increase in personal debt, particularly in the 1980s and 1990s.

As of 2021, personal debt in the UK stands at around £1.7 trillion, with credit card debt and personal loans being the most common types of debt.

Sources:

- "A Brief History of UK Debt," The Motley Fool UK, https://www.fool.co.uk/investing/2018/04/23/a-brief-history-of-uk-debt/.

- "UK National Debt Clock," UK National Debt Clock, https://www.nationaldebtclock.co.uk/.

- "The History of Debt," The Money Charity, https://themoneycharity.org.uk/money-statistics/the-history-of-debt/.

This piece was written by People's Charity, a brief history into debt of the Government and the People.