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.

Want full article access?

Receive The MJ magazine each week and gain access to all the content on this website with a subscription.

Full website content includes additional, exclusive commentary and analysis on the issues affecting local government.

Already a subscriber? Login

Finance Treasury