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UK debt hits £3 trillion as inflation surges to 3.5%
UK's debt mountain tops £3 trillion for the first time ever as inflation hits 3.5% ahead of Budget.
In brief
UK's debt mountain tops £3 trillion for the first time ever as inflation hits 3.5% ahead of Budget. UK's public debt reached £3 trillion for the first time ever, with inflation rising to 3.5% as the government prepares for a Budget amid warnings of economic strain. Originally reported by Dailymail.
UK debt hits £3 trillion milestone
Kemi Badenoch warned of a 'red warning light' on the economy as UK's debt mountain reached £3 trillion for the first time ever.
“There's a red warning light flashing on the economy. Just this morning total government borrowing hit £3trillion, its highest ever.”
Public sector borrowing surges
Official figures showed public sector borrowing rose to £24.5 billion in September, exceeding forecasts by £1.9 billion.
Inflation rises to 3.5%
UK inflation surged to 3.5 percent in the year to September, driven by rising fuel costs linked to the Iran war.
Interest rate hikes expected
Analysts predict the Bank of England will increase interest rates next month, adding pressure on mortgage-payers.
Chancellor prepares fiscal package
Chancellor John Healey will deliver his first fiscal package next Wednesday amid concerns over public finances.
Debt interest costs rise
Central government debt interest costs reached £10.9 billion in September, up £1.6 billion from the previous year.
Social benefits spending up
Net spending on social benefits rose by £1.6 billion to £30.6 billion for the month.
Debt as proportion of GDP falls
Debt as a proportion of GDP decreased by 0.7 percentage points to 94 percent, the lowest level since the early 1960s.
Shadow chancellor warns of fiscal failure
Shadow chancellor Andrew Griffith called the £3 trillion debt level a 'damning indictment of decades of fiscal failure'.
Economists predict rate hikes
Nigel Green, chief executive of deVere Group, expects a rate hike in November and another in December.
Chancellor's fiscal strategy
Chancellor John Healey aims to give 'a bit of breathing space on the costs of living' through targeted spending cuts.
Public sector debt surpasses £3 trillion
Public sector net debt surpassed £3 trillion for the first time, up £91.7 billion compared with a year earlier.
Debt interest costs rise
Central government debt interest costs were £10.9 billion for September, up £1.6 billion against the same month last year.
Inflation driven by fuel costs
UK inflation lifted to an 11-month-high of 3.5 percent last month, partly driven by rising fuel costs linked to the Iran war.
Chancellor's response to inflation
Chancellor John Healey said the UK is not alone in this, as every country worldwide is suffering from the impact of the Iran war.
Budget next week
The Chancellor will deliver his first fiscal package next Wednesday, aiming to balance the books through targeted spending cuts.
The key point
UK's public debt reached £3 trillion for the first time ever, with inflation rising to 3.5% as the government prepares for a Budget amid warnings of economic strain.
