

Could rising government debt threaten the UK’s financial stability, or is reducing borrowing not always the best solution?
This Edexcel A-Level Economics A (9EC0) case study explores the relationship between government borrowing, national debt and financial stability, using real UK public finance data from the Office for National Statistics.
Students will investigate how government borrowing affects financial markets, why gilt yields matter and whether reducing borrowing is the best way to maintain confidence in the UK economy.
What’s included:
- A one-page case study with a short, accessible extract and real UK government borrowing and debt data.
- Three original Edexcel-style questions worth 5, 8 and 12 marks (25 marks in total).
- A full mark scheme showing the economic points students could make.
- Clear assessment objective allocations and level descriptors for the extended response.
Specification coverage:
- 4.4.1 Role of Financial Markets
- 4.4.3 Role of Central Banks
- 4.5.3 Public Sector Finances
The questions give students practice explaining changes in the debt-to-GDP ratio, examining how government borrowing affects financial markets and evaluating whether reducing borrowing is the most effective way to maintain financial stability.
This resource works well for classroom activities, homework, timed exam practice or independent revision. It helps students apply macroeconomic theory to real government decisions while developing stronger analysis and evaluation skills.
Suitable for Edexcel A-Level Economics A students preparing for the 2027 exams.
Part of our 10-case-study Edexcel Economics A bundle, providing focused exam practice across the specification.
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