KazPost

Kazakhstan News
Tuesday, Mar 28, 2023

National debt interest payments rise to record £70bn

National debt interest payments rise to record £70bn

Despite public finances improving last year, 2021 still ranked as the third highest year ever for government borrowing.

Interest payments on the national debt rose to their highest level ever last year, as the UK’s public finances reel from the huge cost of the pandemic.

The government’s statistics department said the debt pile stood at £2.3tn last month, with interest payments rising to nearly £70bn, a record amount according to the Office of National Statistics (ONS).

Government borrowing last year was down by half on 2020, when the state paid many workers to stay at home in an attempt to control the spread of COVID-19.

Yet 2021 still ranked as the third highest on record for public borrowing. The state deficit hit £151.8bn in the 12 months to March 2022, compared to £317.6bn in the previous year.

Despite the reduced level of borrowing, the government still borrowed £24bn more than expected last year.

Chancellor Rishi Sunak said that while the state’s finances were improving with the reopening of society, heavy borrowing throughout the pandemic had left the government saddled with debt.

“Public debt is at the highest levels since the 1960s and rising inflation is pushing up our debt interest costs, which mean we must manage public finances sustainably to avoid saddling future generations with further debt,” said Mr Sunak.

The phasing out of COVID-19 restrictions has boosted the government’s coffers in the past year, according to the ONS.

Tax income to the government was £619.9bn in the past year, an increase of £94.3bn on 2020.

The national debt pile stood at £2.3tn last month


“This is a real glass half full moment for the UK economy,” said Danni Hewson, AJ Bell financial analyst. “The phasing out of covid restrictions and the end of support measures like the furlough scheme have helped the country surge back to its feet.”

Mr Hewson pointed out, however, that inflation was likely playing a significant role in the higher tax receipts.

“VAT receipts are up by £25bn and those soaring prices at the pump along with the restart of the ‘big commute’ has netted an extra £5bn in fuel duty,” he said. But “that doesn’t minimise the £22.5bn in extra PAYE or £6.8bn from self-assessment payments.”

The country is now facing a cost of living crisis that is only likely to worsen Britain’s public finances.

Many people in Britain are facing an increase in energy bills, council tax and the effects of a National Insurance tax rise - as well as inflation hitting a 30-year-high of 7% earlier this month.

On Tuesday, a minister warned that there was "no golden bullet" to solve the crisis, as Boris Johnson prepares to ask his Cabinet ministers to help him find solutions to ease the pressure on household finances.

Armed Forces minister James Heappey told Sky News there is "no doubt" that any interventions by the government will be "expensive", but added that "cumulatively" a range of measures could "start to make a difference".

"There's no doubt about these interventions are expensive - £22bn of government intervention to assist with families with their cost of living is already huge," he said.

Newsletter

Related Articles

KazPost
Close
0:00
0:00
AOC explains why she opposes banning TikTok
Singapore’s Prime Minister says China and US need to stabilize relations because world can't afford a confict between the two superpowers
Gordon Moore, a co-founder of Intel Corporation, died at 94
Powell: Silicon Valley Bank was an 'outlier'
Donald Trump arrested – Twitter goes wild with doctored pictures
NYPD is setting up barricades outside Manhattan Criminal Court ahead of Trump arrest.
Credit Suisse's Scandalous History Resulted in an Obvious Collapse - It's time for regulators who fail to do their job to be held accountable and serve as an example by being behind bars.
Paris Rioting vs Macron anti democratic law
'Sexual Fantasy' Assignment At US School Outrages Parents
Orbán Viktor: the restructuring of the power relations in the whole of Europe is taking place
Credit Suisse to borrow $54 billion from Swiss central bank
Russian Hackers Preparing New Cyber Assault Against Ukraine
"Will Fly Wherever International Law Allows": US Warns Russia After Drone Incident
China is calling out the US, UK, and Australia on their submarine pact, claiming they are going further down a dangerous road
A brief banking situation report
We are witnessing widespread bank fails and the president just gave a 5 min speech then walked off camera.
Donald Trump's asked by Tucker Carlson question on if the U.S. should support regime change in Russia?.
Elon Musk Is Planning To Build A Town In Texas For His Employees
The Silicon Valley Bank’s collapse effect is spreading around the world, affecting startup companies across the globe
City officials in Berlin announced on Thursday that all swimmers at public pools will soon be allowed to swim topless
Fitness scam
Market Chaos as USDC Loses Peg to USD after $3.3 Billion Reserves Held by Silicon Valley Bank Closed.
Banking regulators close SVB, the largest bank failure since the financial crisis
Silicon Valley Bank: Struggles Threaten Tech Startup Ecosystem"
The unelected UK Prime Minister Rishi Sunak, an immigrant himself, defends new controversial crackdown on illegal migration
Man’s penis amputated by mistake after he’s wrongly diagnosed with a tumour
In a major snub to Downing Street's Silicon Valley dreams, UK chip giant Arm has dealt a serious blow to the government's economic strategy by opting for a US listing
It's the question on everyone's lips: could a four-day workweek be the future of employment?
Is Gold the Ultimate Safe Haven Asset in Times of Uncertainty?
Corruption and Influence Buying Uncovered in International Mainstream Media: Investigation Reveals Growing Disinformation Mercenaries
European MP Clare Daly condemns US attack on Nord Stream
Kamala Harris: "The United States has formally determined that Russia has committed crimes against humanity."
US Joins 15 NATO Nations in Largest Space Data Collection Initiative in History
White House: No ETs over the United States
U.S. Jet Shoots Down Flying Object Over Canada
Nord Stream terror attack: David Sacks breaks down Sy Hersh's story
Being a Tiktoker might be expensive…
SpaceX, the private space exploration company, made a significant breakthrough in their mission to reach space.
China's top tech firms, including Alibaba, Tencent, Baidu, NetEase, and JD.com, are developing their own versions of Open AI's AI-powered chatbot, ChatGPT
This shocking picture, showing how terrible is the results of the earthquake in Turkey
The desk of King Carlos Alberto of Sardinia has many secret compartments
Today's news from Britain - 9th February 2023
The five largest oil companies in the West generated combined profits of nearly $200 billion in 2022, which has led to increased calls for governments to impose tougher windfall taxes
2 earthquakes in Turkey killed over 2,300 people
Turkish photographer Ugur Gallenkus portrays two different worlds within a single image. Brilliant work
Charlie Munger, calls for a ban on cryptocurrencies in the US, following China's lead
EU found a way to use frozen Russian funds
First generation unopened iPhone set to fetch more than $50,000 at auction.
WARNING GRAPHIC CONTENT - US Memphis Police murdering innocent Tyre Nichols
Almost 30% of professionals say they've tried ChatGPT at work
×