UK is stuck in a ‘debt doom loop’, says top investor

Hedge fund chief Ray Dalio warns over public finances, saying Britain will be forced into spending cuts and tax rises

One of the world's most prominent hedge fund investors, Ray Dalio, has warned that the UK is stuck in a doom loop" as it faces a worrying mix of higher taxes, rising debts and slower growth.

Dalio, a US billionaire who founded the hedge fund Bridgewater Associates in 1975, said warning signs over the size of debts in western countries were beginning to flash and flicker", but that the UK government's efforts to raise more funds via taxes risked driving its wealthiest taxpayers out of the country.