The Treasury will spend more on interest on debt than on schools this year as ‘smashing’ borrowing costs skyrocket after Covid and Ukraine.
Rishi Sunak in 2021/22 is ready to pay a £50 billion bill simply for paying interest on our growing £2.2 trillion public debt.
Rishi Sunak is preparing to receive a £50 billion bill in 2021/22 to pay interest on our £2.2 trillion public debt.[/caption]
That’s more than England’s £45bn school budget.
Interest payments on the loan are expected to top over £8bn for February alone, when released today.
The cost of borrowing has risen sharply since the Covid pandemic and the aftermath Putin’s war with Ukraine — leaving the Chancellor thin porridge for this week’s mini-budget to deal with the cost-of-living crisis.
Mr. Sunak is facing the highest level of debt as a percentage of GDP since the 1960s after being given the latest forecast data ahead of him spring statement on Wednesday.
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Last night, a Treasury Department source told The Sun: “Things are looking pretty bleak.
“Loans, borrowing costs and debt are incredibly high, and the uncertain situation in Ukraine could push them even higher.
“There’s not much room to maneuver, which puts the Chancellor in a difficult position.”
Mr. Sunak is under intense pressure to fuel duty reduction on Wednesday after another record-breaking day at gas stations.
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DON’T BE THE FUEL
MPs urge Rishi to cut fuel duty by at least 5p to help Britons deal with rising prices
Experian Catalyst numbers show the average price liter of fuel on Sunday it was 167 pence for petrol and 179 pence for diesel.
This means an increase of 18p for petrol and 26p for diesel over the last month.
Inset 5p fuel surcharge The British will still pay some of the highest taxes in all of Europe, but will cut the average cost of a 55-litre tank by £3.30.
Filling up the family car now costs £91.86 for petrol and £98.43 for diesel.
Tory campaign MP Robert Halfon said yesterday: “I have never really seen hardship and fear on the part of my constituents due to ever-increasing prices.
“People are horrified, this is literally out of reach for millions of people.
“This is the most important domestic issue that our country is facing.”