Part 7/11:
The concept of national debt is often misunderstood. A significant portion of UK debt is domestically held, with financial institutions such as banks and pension funds owning a substantial share. While approximately 28% of UK debt is owned by foreign investors—one of the highest figures in advanced economies—this ownership does not necessarily spell disaster. The argument that a high rate of foreign ownership could enhance vulnerability is not entirely convincing as there is a congruence of information available to domestic and foreign investors alike.