Number of UK debts increase

20/11/2008

The total number of consumer and business debts in the UK has risen by more than one fifth (22 per cent) in the last year, a new report shows.

There are currently 15.8 million outstanding debts in the UK, up from 13 million 12 months ago, according to the National Audit Office (NAO).

Debt collected by the Revenue and Customs (HMRC) Debt Management and Banking Directorate has also increased by ten per cent in the last 12 months, compared to the year before.

It collected around £310 for every £1 spent in the last year.

Tim Burr, head of the NAO, explained that there had been "limited progress" on introducing measures that could help "manage the growing level of debt in a more difficult economic climate".

"To manage tax debt more effectively, HMRC should link different debts owed on each tax by the same taxpayer and prioritise debts which are less likely to be paid without action by the department."

Tags; Budgeting Advice,

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