UK public sector could have £4trn of hidden debts

The UK's public sector debt could be nearly £4trn higher than headline figures suggest, according to new research.

Highlighting the scale of the economic challenges facing the Government, the Office for National Statistics (ONS) has released a study suggesting the public purse could be faced with £4.84trn of liabilities.

This compares with the current public sector net debt figure of £903bn, the Telegraph reports.

Every man, woman and child in the country is carrying a £65,000 share of state debt, according to the first official breakdown of how much the Government really owes.

David Hobbs of the ONS described the public sector balance sheet as an "open-ended concept" as he outlined liabilities that are considered to be "off-balance sheet" or not covered in official debt measures.

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BT's pension liability may hit £22.8bn

Taxpayers could be on the hook for between £7.3bn and £22.8bn ($11.1bn-$34.6bn) if BT were to become insolvent and its pension scheme terminated, according to written papers submitted to the High Court on Tuesday.

The gulf between the figures illustrates why BT and its scheme trustees and government ministers have not been able to settle a dispute about the extent of the liability that was made public 2006, the Financial Times reports.

Trustees for BT Group's employee pension plan, the UK's largest defined benefit scheme, have asked the court to rule on how much of the fund taxpayers would have to underwrite if BT collapsed.

At its last actuarial valuation, BT's full liabilities were £40.2bn and assets were £31.3bn.

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Competition probe into high street banks could seek to break up the big names

High street banks face further pressure after a major inquiry into the retail banking sector was announced yesterday, the Daily Mail reports.

The Commons Treasury Select Committee will investigate whether there is a lack of competition between Britain's lenders.

The influential group of MPs will also debate whether free banking - where people do not pay charges to operate an account - still has a future.

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