Rising interest on debt blows hole in public finances

By Michael Burton | 22 March 2022

Rising debt interest has knocked a hole in the public finances before Chancellor Rishi Sunak announces a spring statement already under pressure due to the Ukraine crisis.

The cost of servicing the UK’s £2trn debt last month rose by £2.8bn to £8.2bn, the highest February figure on record, due to inflation.

Total borrowing for the month at £13.1bn was the second highest February amount for almost 30 years. Although it was £2.4bn less than February 2021 it was still £12.8bn more than in February 2020 just before the pandemic, according to the Office for National Statistics.

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