Jul 23, 2025 03:30 AM
(This post was last modified: Jul 23, 2025 03:31 AM by C C.)
https://www.dailymail.co.uk/news/article...hikes.html
INTRO: Britain is drowning in debt, with borrowing jumping to a five-year-high, the latest figures reveal. Rachel Reeves will now face intensifying pressure to put up taxes to deal with the spiralling cost of servicing the debt pile.
Borrowing, which makes up the shortfall between the Government's income through tax and the amount it spends, climbed last month to a larger than expected £20.7billion. That was the highest level for June since 2020 and £6.6billion more than a year ago.
The surge was fuelled by a sharp increase in debt interest payments, up from £8.4billion to £16.4billion. The figures highlight the staggering cost of servicing the UK's debt mountain, which now stands at a towering £2.87trillion. Debt interest payments are expected to surpass £110billion this financial year.
The Chancellor told a House of Lords committee hearing yesterday that the UK was 'still very reliant on the goodwill of strangers' who finance Britain's debt by buying government bonds.
She added: 'I'm a Labour politician. I don't think there's anything progressive about spending £100billion a year, often to US hedge funds, when I would rather spend that money on the health service or on defence or on better schools.'
Rachel Reeves will now face intensifying pressure to put up taxes to deal with the spiralling cost of servicing the debt pile. Ms Reeves said that meant she would stick to her fiscal rules, which require the Government to balance the books on day-to-day spending and target an eventual reduction in debt.
Failure to do so could mean bond investors demand even higher rates to lend to the UK. Yields have already risen since Labour came to power a year ago. Higher inflation also contributes to raise debt interest costs... (MORE - details)
INTRO: Britain is drowning in debt, with borrowing jumping to a five-year-high, the latest figures reveal. Rachel Reeves will now face intensifying pressure to put up taxes to deal with the spiralling cost of servicing the debt pile.
Borrowing, which makes up the shortfall between the Government's income through tax and the amount it spends, climbed last month to a larger than expected £20.7billion. That was the highest level for June since 2020 and £6.6billion more than a year ago.
The surge was fuelled by a sharp increase in debt interest payments, up from £8.4billion to £16.4billion. The figures highlight the staggering cost of servicing the UK's debt mountain, which now stands at a towering £2.87trillion. Debt interest payments are expected to surpass £110billion this financial year.
The Chancellor told a House of Lords committee hearing yesterday that the UK was 'still very reliant on the goodwill of strangers' who finance Britain's debt by buying government bonds.
She added: 'I'm a Labour politician. I don't think there's anything progressive about spending £100billion a year, often to US hedge funds, when I would rather spend that money on the health service or on defence or on better schools.'
Rachel Reeves will now face intensifying pressure to put up taxes to deal with the spiralling cost of servicing the debt pile. Ms Reeves said that meant she would stick to her fiscal rules, which require the Government to balance the books on day-to-day spending and target an eventual reduction in debt.
Failure to do so could mean bond investors demand even higher rates to lend to the UK. Yields have already risen since Labour came to power a year ago. Higher inflation also contributes to raise debt interest costs... (MORE - details)