Is Britain Broke?

Though a relatively small island nation, Britain has wielded tremendous power and financial might over the centuries. London has long been a financial hub for the world! The pound sterling has been a global currency standard, and it continues to be one of the strongest world currencies. Additionally, the Financial Times Stock Exchange 100—a stock index of Britain’s top 100 companies—is respected worldwide. Britain’s standard of living also continues to be among the highest in the world.

Yet something is wrong with Britain’s money purse. Its apparent wealth and financial superiority are only a mirage. When the new Labour government took office in July 2024, Reuters published an article entitled “Britain is ‘broke and broken’, new government declares” (July 29, 2024). Although the new government intentionally used alarmist language to blame Britain’s current financial woes on their predecessors, the observation was correct, and in fact shed glaring light on a problem that has been brewing in the nation for decades.

On the Brink of Crisis

As a commentary writer for the respected Telegraph bemoaned, “The lights are flashing red, but nobody in Britain’s beleaguered Government wants to know” (January 25, 2025). The sobering title of the commentary was “Britain is on the brink of a full-blown fiscal crisis.” The Telegraph author also noted that other nations see Britain as “a declining medium-sized economy on the fringes of Europe still struggling to make Brexit work to its economic advantage.” At the heart of the matter is that Britain, a nation with little domestic savings, is borrowing heavily—it has become increasingly reliant on foreign money to make ends meet.

A look internally shows that, since 2020, eight UK city or town councils (local governments) have gone bankrupt (Telegraph, November 27, 2024), often due to bad investments that council members had hoped would aid their financial shortfalls. Increased housing costs and costs of care for the elderly, often borne by city councils, are nearly impossible to manage. As for the national government, expenses such as national insurance, public sector pensions, and student loan debt are crushing the economy. Several universities are expected to go bankrupt in the next few years, likely requiring government bailout. The National Audit Office (NAO), responsible for overseeing the expenditures of more than 10,000 public bodies, has reported a “severe backlog” in its audits of public accounts. This means the government is spending money without clear knowledge of available funds. As one financial writer put it, “The harsh reality is that the UK has been gradually running out of money for the last twenty years. We don’t know precisely how close to running out of money we are. But the NAO decision is a sign that the endgame may well be a lot closer than anyone realises right now.”

Economists forecast that higher government and household spending in 2025 will result in an improved UK economy that will outperform stagnating European economies (Financial Times, January 2, 2025). However, with stagnant wage growth and increasing unemployment, life for the average person will still decline. Mounting debt will likely result in a need to increase taxes—further worsening conditions for the average wage-earner.

And Britain is not alone in its financial woes. Europe, as a whole, is struggling financially. Germany has not seen economic growth in five years, and its automobile manufacturing sector has been hit particularly hard (The Independent, February 17, 2025). Additionally, according to an International Monetary Fund former chief economist, “France is on the brink of an economic crisis” due to years of political inaction (FirstPost, January 18, 2025). The French government has relied on deficit spending since 1974—that is 50 years of spending more than it takes in (Harvard International Review, November 5, 2024). How long can this continue? Economists wonder how Europe will fare if France’s economy fails, given that France—along with Germany—is one of the two chief economic engines of the continent.

As Telegraph writer Matthew Lynn soberingly observed regarding Britain’s financial future, “Asked how he went broke, an Ernest Hemingway character explains. ‘Gradually. And then suddenly.’” For the UK, “the ‘gradually’ could turn to ‘suddenly’ any day now” (November 27, 2024).

Causes and Consequences

Many nations around the globe are in dire financial straits. But why are the UK and other once-great Israelite-descended nations struggling? Through its prophecies, the Bible sheds light on today’s situation. God promised to bless and protect these nations as long as they would keep their focus on Him:

The Lord will open to you His good treasure, the heavens, to give the rain to your land in its season, and to bless all the work of your hand. You shall lend to many nations, but you shall not borrow. And the Lord will make you the head and not the tail; you shall be above only, and not be beneath, if you heed the commandments of the Lord your God, which I command you today, and are careful to observe them (Deuteronomy 28:12–13).

God desires for these nations to prosper because of promises that He made to bless the descendants of Abraham through Isaac (Genesis 22:15–18). But He warned that, if the Israelite-descended nations rejected Him, dire curses would ensue—including financial ruin: “And you shall become an astonishment, a proverb, and a byword among all nations where the Lord will drive you…. The alien who is among you shall rise higher and higher above you, and you shall come down lower and lower. He shall lend to you, but you shall not lend to him; he shall be the head, and you shall be the tail” (Deuteronomy 28:37, 43–44).

The United Kingdom and the other Israelite-descended nations of the West have chosen to reject God. Sadly, this is leading to the removal of their blessings. It will also result in future suffering and humiliation. Yet God is merciful, and His anger is short-lived (Psalm 30:5). He has planned a future and a hope for the Israelite-descended nations like Britain—and for all of humanity, too (Jeremiah 29:11). He plans to welcome them back when, in the future, they truly turn to Him: “‘As I live,’ says the Lord God, ‘I have no pleasure in the death of the wicked, but that the wicked turn from his way and live. Turn, turn from your evil ways! For why should you die, O house of Israel?’” (Ezekiel 33:11).

The Bible is clear about the dark future of Britain’s godless plans—but its financial woes will not last forever. God is merciful and loving, and He will again bless the British people with abundance when they finally see the error of their ways. To learn more about the hope for the British and the British-descended peoples, be sure to read our fascinating booklet The United States and Great Britain in Prophecy here at TomorrowsWorld.org, or contact the Regional Office nearest you (listed on page 4 of our magazine) to receive your free printed copy.