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The Guardian - UK
The Guardian - UK
Business
Phillip Inman

Soaring inflation pushes interest payments on UK debt to record high in June

The HM Treasury sign
A quarter of the UK’s £2.5tn government debt is index-linked, making the cost of servicing it vulnerable to rising inflation. Photograph: Andrew Aitchison/Corbis/Getty Images

Soaring inflation pushed interest payments on UK debt to a record high in June, putting the government’s budget deficit on course to reach more than £100bn this year, almost double its pre-pandemic level.

Highlighting the scale of the economic challenge that will face the next prime minister, debt interest payments hit £19.4bn last month alone, the highest since monthly records began in April 1997, according to the Office for National Statistics.

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