Debt pile increases by 4.3 percentage points in year to August, adding to challenge for chancellor Rachel Reeves

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UK national debt has hit 100% of the country’s annual economic output, the highest level since the 1960s, underscoring the challenge facing the chancellor, Rachel Reeves, as she prepares for next month’s budget.

Figures from the Office for National Statistics (ONS) show the government’s debt pile as a share of gross domestic product increased by 4.3 percentage points over the year to August to reach a size equal to the annual value of everything produced in the economy.