Darling admits national debt will cost £60bn to service
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The Chancellor Alistair Darling will admit this afternoon that the interest payments on the national debt over the next four years will cost £60bn.
According to the Times, Darling will speak before the Treasury select committee this afternoon and will tell MPs that the £178bn budget deficit’s interest will double by 2014.
The £60bn will come from paying out coupons on gilts sold to the private sector over the coming years.
On Monday, the HSBC chief economist Dennis Turner told the committee that the bank forecast that the interest bill would jump to around £60bn in 2014. For the current year, the cost of servicing the deficit is around £30bn.
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