By Jonathan Bailey of the Bank’s Monetary and Financial Statistics Division.
Public sector net debt fell by 2.8%, at nominal value, during the financial year to end-March 2000. This was the second successive annual reduction, following seven consecutive annual increases up to 1998. At end-March 2000 public sector net debt represented 36.6% of GDP, the lowest figure since 1994 and 3 percentage points lower than at end-March 1999. This article continues the annual series in the Quarterly Bulletin analysing the outstanding financial liabilities of the public sector. It discusses developments during the year, and considers the implications of the current level and structure of UK government debt.