Economics
U.K. Debt Costs See Fastest Spike Since 2010 as Inflation Bites
- Budget deficit so far in 2021-22 is down almost 50% on year
- Public sector pay bill jumps almost 10%, official data show
Pedestrians cross an empty street in the City of London, U.K., on Dec. 20.
Photographer: Jason Alden/BloombergThis article is for subscribers only.
U.K. debt costs are rising at the fastest pace since the aftermath of the global financial crisis, a potential headache for Chancellor Rishi Sunak as he faces pressure to spend more to help businesses weather the impact of the omicron variant.
Figures published Tuesday showed interest payments made by the Treasury surged 54% between April and November, or by 15 billion pounds ($20 billion) to 42.9 billion pounds. That’s the biggest jump for the period since 2010.