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UK debt interest reaches record high as inflation soars - Perthshire Chamber of Commerce

UK debt interest reaches record high as inflation soars

Surging inflation led interest payments on UK government debt to hit the highest amount on record in June.

Interest payments paid by the government for last month hit £19.4bn.

It pushed government borrowing for the month up to the second-highest June level since records began in 1993.

Borrowing - the difference between spending and tax income - was £22.9bn during the month, up by £4.1bn from a year earlier, the Office for National Statistics said.

The interest payments were more than double the previous monthly record set in June 2021.

The recent high levels of debt interest payments are largely a result of higher inflation, the Office for National Statistics (ONS) said.

This is due to the interest paid on government bonds rising in line with the Retail Prices Index measure of inflation, which hit 11.8% in June.

FROM SCC NETWORK

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