{"id":414551,"date":"2025-09-11T01:17:23","date_gmt":"2025-09-11T01:17:23","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/414551\/"},"modified":"2025-09-11T01:17:23","modified_gmt":"2025-09-11T01:17:23","slug":"britain-in-a-worse-position-to-deal-with-a-financial-crisis-than-2008-warns-former-bank-governor-mervyn-king","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/414551\/","title":{"rendered":"Britain in a worse position to deal with a financial crisis than 2008, warns former Bank governor Mervyn King"},"content":{"rendered":"<p class=\"author-section byline-plain\">By DAILY MAIL CITY &amp; FINANCE REPORTER <\/p>\n<p class=\"byline-section\"> Updated:  17:03 EDT, 10 September 2025   <\/p>\n<p class=\"mol-para-with-font\">Former Bank of England boss Mervyn King has warned Britain is \u2018not in a comfortable position\u2019 as it faces a debt pile.<\/p>\n<p class=\"mol-para-with-font\">Lord King of Lothbury, who led the Bank through the 2008 financial meltdown, said Britain would today be in a worse position to deal with a crisis.<\/p>\n<p class=\"mol-para-with-font\">Long-term UK borrowing costs have hit a 27-year high amid doubts about Labour\u2019s ability to balance the books, giving bond markets the jitters.\u00a0<\/p>\n<p class=\"mol-para-with-font\">Bank Governor Andrew Bailey dismissed a bond sell-off, saying it was in line with a global sell-off.<\/p>\n<p class=\"mol-para-with-font\">But King told a Lords select committee: \u2018Some people have drawn comfort from the fact that the recent rise in long-term <a style=\"font-weight: bold;\" target=\"_self\" href=\"https:\/\/www.thisismoney.co.uk\/money\/mortgageshome\/article-11885727\/When-rates-start-fall-Base-rate-forecasts.html\" id=\"mol-1439c410-8e85-11f0-94ce-75975bff74a2\" rel=\"noopener\">interest rates<\/a> has been true across the G7, and it has. But that simply means we\u2019re all in the same mess.<\/p>\n<p class=\"mol-para-with-font\">\u2018I think if there were to be another crisis, governments would cope with it, but it would come at a cost, with a much larger rise in the ratio of debt-to-GDP, and we would see interest rates go up to offset that. We\u2019re not in a comfortable position.<\/p>\n<p class=\"mol-para-with-font\">\u2018I think we\u2019d cope with another crisis but it wouldn\u2019t be comfortable. We were in a much stronger position in 2007\/08.\u2019<\/p>\n<p>  <img decoding=\"async\" id=\"i-17cd653865ebec3a\" src=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/09\/102020751-0-Warning_Former_Bank_of_England_boss_Mervyn_King_who_led_the_Bank-m-12_1757535481267.jpg\" height=\"412\" width=\"634\" alt=\"Warning: Former Bank of England boss Mervyn King, who led the Bank through the 2008 financial meltdown, said Britain would today be in a worse position to deal with a crisis\" class=\"blkBorder img-share\" style=\"max-width:100%\" loading=\"lazy\" \/>  <\/p>\n<p class=\"imageCaption\">Warning: Former Bank of England boss Mervyn King, who led the Bank through the 2008 financial meltdown, said Britain would today be in a worse position to deal with a crisis<\/p>\n<p>DIY INVESTING PLATFORMS<img decoding=\"async\" src=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/09\/1757553439_101_A J Bell 2022_122X84.png\" alt=\"Easy investing and ready-made portfolios\" \/>AJ Bell<img decoding=\"async\" src=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/09\/1757553439_101_A J Bell 2022_122X84.png\" alt=\"Easy investing and ready-made portfolios\" \/>AJ Bell<\/p>\n<p>Easy investing and ready-made portfolios<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/04\/HL-Logo_122x84.jpg\" alt=\"Free fund dealing and investment ideas\" \/>Hargreaves Lansdown<img decoding=\"async\" src=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/04\/HL-Logo_122x84.jpg\" alt=\"Free fund dealing and investment ideas\" \/>Hargreaves Lansdown<\/p>\n<p>Free fund dealing and investment ideas<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/04\/ii_thisismoney_122x84.png\" alt=\"Flat-fee investing from \u00a34.99 per month\" \/>interactive investor<img decoding=\"async\" src=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/04\/ii_thisismoney_122x84.png\" alt=\"Flat-fee investing from \u00a34.99 per month\" \/>interactive investor<\/p>\n<p>Flat-fee investing from \u00a34.99 per month<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/09\/1757553442_823_122x84 Blue.png\" alt=\"Account and trading fee-free ETF investing\" \/>InvestEngine<img decoding=\"async\" src=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/09\/1757553442_823_122x84 Blue.png\" alt=\"Account and trading fee-free ETF investing\" \/>InvestEngine<\/p>\n<p>Account and trading fee-free ETF investing<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/09\/1757553443_325_T212Logo_Icon_130x90.png\n\" alt=\"Free share dealing and no account fee\" \/>Trading 212<img decoding=\"async\" src=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/09\/1757553443_325_T212Logo_Icon_130x90.png\n\" alt=\"Free share dealing and no account fee\" \/>Trading 212<\/p>\n<p>Free share dealing and no account fee<\/p>\n<p class=\"tim-affiliate-text\">Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.<\/p>\n<p><a href=\"https:\/\/www.thisismoney.co.uk\/money\/diyinvesting\/article-1718291\/Pick-best-cheapest-investment-Isa-platform.html?ico=tim-affiliate_desktop_bottom-link-click\" target=\"_blank\" class=\"optional-btn-wrapper\" rel=\"noopener\">Compare the best investing account for you <\/a><\/p>\n<p>                    Share or comment on this article:<br \/>\n                        Britain in a worse position to deal with a financial crisis than 2008, warns former Bank governor Mervyn King<\/p>\n","protected":false},"excerpt":{"rendered":"By DAILY MAIL CITY &amp; FINANCE REPORTER Updated: 17:03 EDT, 10 September 2025 Former Bank of England boss&hellip;\n","protected":false},"author":2,"featured_media":414552,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3090],"tags":[51,1700,1232,1284,1283,16,15],"class_list":{"0":"post-414551","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-money","11":"tag-moneymarkets","12":"tag-thisismoney","13":"tag-uk","14":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115183029872330413","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/414551","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=414551"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/414551\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/414552"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=414551"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=414551"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=414551"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}