Fact Check: Claims of UK Government Seizing Savings too Cover National Debt are False
London – Social media posts circulating since November 2023 falsely claim the British government intends to seize citizens’ savings accounts to address the national debt. These claims, amplified across platforms like Facebook, X (formerly Twitter), and TikTok, are unfounded and have been debunked by the Reuters Fact Check team. The assertions appear to stem from misinterpretations of government policy and anxieties surrounding the UK’s economic situation.
The false narrative gained traction following discussions about potential government borrowing and debt management strategies. While the UK, like many nations, faces economic challenges and considerable debt, there is no policy, plan, or indication that the government will resort to seizing personal savings. Such a move would be unprecedented, legally complex, and politically damaging, and would fundamentally undermine trust in the financial system. The claims primarily target individuals with savings,creating needless financial worry and contributing to the spread of misinformation.
According to Reuters, the origin of the claims can be traced back to a video featuring economist Graham Smith, where he discussed the possibility of the government issuing “savings bonds” as a debt management tool. This was misinterpreted as a plan to confiscate existing savings. The UK Treasury has explicitly stated there is no truth to the claims, reaffirming the security of personal savings.
The UK’s national debt currently stands at over £2.6 trillion as of november 2023, according to the Office for National Statistics. The government manages this debt through various methods, including issuing government bonds (gilts) and controlling public spending. Seizing savings would not only be a drastic and likely illegal measure but also a highly inefficient way to address the debt, potentially triggering a financial crisis.
For more information on Reuters’ fact-checking work, visit https://www.reuters.com/fact-check/about. the Thomson Reuters Trust Principles,guiding their journalism,can be found at https://www.thomsonreuters.com/en/about-us/trust-principles.html.
