The UK’s debts are now at centre stage of Brexit talks.
How did it happen?
In 2014, the UK’s debt-to-GDP ratio, or the amount of money owed to the government by the economy as a whole, rose by more than half to 127 per cent of GDP.
It had fallen to 100 per cent in 2009.
The increase came after years of spending cuts and tax rises and was triggered by a property boom, boosted by the financial crisis.
But the UK economy was already running out of cash by then and, as a result, it began to default on its debts.
In September 2017, the government announced it would pay off £1.7bn of its debts by the end of 2019.
But the government later reduced the repayment threshold, meaning it would have to repay more money to the taxpayer than it had originally pledged.
The UK government has said it is prepared to meet the debt ceiling, which is £10.5bn, but that will have to be raised again, as the UK has not been able to raise the funds it needs from other sources.
But a further debt settlement has become an important issue for Brexit negotiators.
It comes after the UK government agreed in August 2017 to a £4.5tn settlement with the European Union over the debt crisis.
It meant the EU was able to guarantee the UK the debt at a lower rate than it previously agreed.
The EU is expected to sign off on the UK deal on Thursday.
The government has been negotiating over how it will repay its debt to the EU, which has been a key issue in Brexit talks, since it agreed in 2019 to the £4bn deal.
This is the first time the UK, which wants to leave the EU and exit the EU single market, has agreed a settlement to pay back its debts to the European Court of Justice (ECJ), the EU’s highest court.
The ECJ ruled in 2016 that the UK had breached the rules of the European Communities Act 1972, which governs its relationship with the EU.
It said the UK was not being given enough time to pay off the debts and the ECJ has ruled that it is now in breach of the UK constitution and should pay the remaining debt.
But Brexit Secretary David Davis has insisted the UK should honour the deal because the UK cannot simply change the way it pays its debts, because the EU would not agree to such a deal.
The agreement also stipulates that if the UK does not pay its debts in full by 2019, it will be forced to repay them in full.
The terms of the deal are also complex.
Under the terms of this agreement, the British government must pay a percentage of the outstanding debt of each of the EU member states.
The total amount of the debt owed by the UK to the ECG is estimated at £1,039.6bn, and this is what the UK pays.
However, there are a number of other issues that could complicate the UK negotiations.
In December, the EU Commission announced that the EU had received a letter from the UK Treasury indicating that it was not in breach, but it had decided not to take legal action.
It said that the letter came from the ECU, not the UK Department for International Trade, which also represents the UK.
The letter indicated that the EC had not requested a full payment from the Treasury and that there was no risk that it would not be paid.
But in March, the EC said it was considering whether to take action against the UK because it could not afford to lose an appeal.
The Financial Times has reported that the British Treasury has been looking to resolve the outstanding debts, and it is believed to be seeking £3.5 billion in interest from the EU to cover its costs of repaying them.
The financial falloutThe UK has also been criticised for failing to make sufficient payments to the UK public sector, which includes the government.
The Office for Budget Responsibility, an independent body, recently said that public sector pay had been squeezed by a £5bn cut to public sector salaries and the Government’s failure to make the cuts permanent.
It added that the public sector will be on course for £8bn of annual deficits in 2021-22, which it estimates will lead to a further £9bn in pension liabilities and the £7.4bn in savings it expects from the Brexit settlement.
The Government also faces the risk that the bill for Brexit payments will not be repaid.
It has promised that any settlement must include an annual cash payment.
But many economists believe that, even if it is not, the Government will not get a deal, because there are no other options.
Professor Mark Carney, director of the Institute of Fiscal Studies, said the Government had made a mistake by not making a more immediate cash payment to the public service.
He added that there is no way that the Government can be certain of what its debts will be in 2021 without a full cash payment, and that could leave the Government