Britain's national debt breaks through £3 trillion for the first time a week before Chancellor John Healey's maiden Budget
Britain's debt interest bill hit £10.9bn in September alone — the highest for that month on record — as John Healey's fiscal headroom looks set to halve to around £12bn.John Healey, whose first Budget falls on 28 October, faces borrowing of £97.8bn in the first half of the year — £6bn above OBR forecasts — and is set to raise taxes on banks.
Britain's national debt has crossed the £3 trillion mark for the first time, with September's debt interest bill hitting a record £10.9bn for that month. The share falling to each household now exceeds £100,000, while monthly borrowing stood at £24.5bn — £1.9bn above official forecasts. Soaring borrowing costs stemming from the Iran war have been the principal driver of the increase. At PMQs, Kemi Badenoch told Prime Minister Andy Burnham that a 'red warning light' is flashing on the economy.
Healey is expected to hit banks with higher taxes in next Wednesday's Budget.
Inflation jumped to 3.5%, and one economist says an interest rate hike is 'almost guaranteed'.
Debt only passed £2tn in June 2020, so the latest trillion took just six years.
