UK debt to hit £10trn by 2015 - papers

PwC predicts Britain’s total debt will reach £10trn in 2015, warning of decades of poor growth as interest rates rise and the GDP to debt ratio falls to historic lows.

If the economy does not grow as expected, the firm warns, the national debt could reach 5.8 times more than GDP.

Private sector debt is the greatest problem according to PwC, the Telegraph reports.

In 2009, government debt was less than a sixth of the size of private sector debt, and with interest rates set to rise, the burden will increase, the accountancy firm says.

PwC predicts interest rates on mortgages could be higher than before the recession the increased cost of more regulation is passed from lenders to home owners.

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Rok scrabbles for buyer as administrators called in

Building group Rok is to be sold off by administrators PwC after the company collapsed yesterday.

The former stock market favourite, which carries out building repairs for insurers and local authorities, has £60m of debt with RBS, HSBC and Clydesdale, with 3,800 jobs at risk.

PwC was called in yesterday by chief executive Garvis Snook after revenues fell 30% below budget in September.

The fall in revenues was triggered as public sector organizations, which make up 55% of Rok's business, cut back contracts due to restricted government spending measures.

PwC says the group has already had 50 expressions of interest in acquiring Rok Plc and Rok Building Ltd or individual contracts, the Telegraph reports.

Mike Jervis, joint administrator, says: "Our immediate priority is to urgently review the financial position of the company and seek a buyer of the businesses."

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Gold hits $1,400 an ounce

Gold prices surged yesterday to $1,400 per troy ounce, a new record high, as World Bank president Robert Zoellick said leading economies should look at a modified global gold standard to calm currency movement.

In euros, gold reached €1,000 per ounce for the first time since July as investors piled in.

Zoellick's comments came after fears before the G20 meeting in South Korea that countries will engage further in a currency war, the Financial Times reports.

Gold's rise has delivered large profits to hedge fund managers such as David Einhorn of Greenlight Capital and John Paulson of Paulson and Co, who bet central banks would fail to preserve the value of paper currencies by investing heavily in bullion.

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