The true level of Government debt is equivalent to 157 per cent of national output and nearly three times as large as the £805 billion figure reported by the Office for National Statistics, according to a new book published by a centre-right think tank.

Full report here.

Sir Howard Davies, now Director of the London School of Economics, said Britain faces a dangerous rise in the levels of public debt – even taking into account tax increases planned for coming years.

“The next six months are going to be extremely delicate in the UK”, he told a gathering of HSBC clients in London. “It is very clear that something dramatic has to happen to control spending: but is the economy robust enough to survive fiscal tightening?”

via Ex-FSA chief Sir Howard Davies sees ‘dramatic’ risks for Britain – Telegraph.