National Debt in the UK
Created | Updated Feb 1, 2005
The UK National Debt in 2001 stood at around £400 billion and the annual interest on that is around £25-30 billion! So how did it all start?
The national debt all started back in 1694 when King William needed money to fight a war against France and he borrowed £1.2 million at an interest rate of 8% per annum from a group of London bankers and goldsmiths. In return for this lean, they were incorporated by royal charter as the 'Bank of England', which became the government's banker. To pay back the loan, taxes were imposed on a whole range of goods. And so the national debt was born.
Scotland took a share of the English national debt in 1707 in return for a financial sweetner known as The Equivalent. The Scots were offered short term commercial advantages for landowners, and free trade with England and her colonial empire. This was hugely unpopular with the rest of the Scottish population. The song 'Parcel of Rogues' by Steeleye Span tells of this act.
Useful links
WTO and the history of Free Trade
