THE Treasury will spend more this year on debt interest than schools as “jaw-dropping” borrowing costs spiral in the wake of Covid and Ukraine.
Rishi Sunak is braced for a £50billion bill in 2021/22 for simply paying off the interest charges on our soaring £2.2trillion national debt.
That’s more than the £45billion schools budget for England.
Interest payments on the borrowing are expected to top more than £8billion for February alone when published today.
The cost of borrowing has soared in the wake of the Covid pandemic and fallout from Putin’s war on Ukraine — leaving the Chancellor thin gruel for this week’s mini-Budget to tackle the cost of living crisis.
Mr Sunak is facing the highest levels of debt as a percentage of GDP since the 1960s after being handed the latest forecast figures ahead of his Spring Statement on Wednesday.
Read More on Cost of Living Crisis
Last night, a Treasury source told HOAR: “Things are looking pretty bleak.
“Borrowing, the cost of borrowing and debt are jaw-droppingly high and the uncertain situation in Ukraine risks them going up even more.
“There’s not a lot of room for manoeuvre — which puts the Chancellor in a tight spot.”
Mr Sunak is under intense pressure to slash fuel duty on Wednesday after another record-smashing day at the pumps.
Figures from Experian Catalyst show the average price of a litre of fuel on Sunday was 167p for petrol and 179p for diesel.
That works out as an increase of 18p for petrol and 26p for diesel over the past month.
A 5p cut in fuel duty would still see Brits paying some of the highest taxes in all of Europe — but would slash £3.30 off the average cost of a 55-litre tank.
Filling up a family car now costs £91.86 for petrol and £98.43 for diesel.
Campaigning MP, Tory Robert Halfon, said yesterday: “I have genuinely never seen the hardship and fear from my constituents because of ever-rising prices.
“People are terrified, it’s literally unaffordable for millions of people.
“This is the single most important issue, domestically, facing our nation.”
Did you miss our previous article…
https://www.hellofaread.com/politics/america-poised-to-dump-crippling-tariffs-on-british-steel-as-ministers-hope-to-pen-full-blown-us-trade-deal/
