Debt interest payments will rise by almost half over the lifetime of this Parliament, according to the Chancellor’s comprehensive spending review.
Chancellor George Osborne (pictured) announced today that interest payments will be £63bn in 2014-15, despite the savage cuts announced in the CSR. This compares with payments of £43bn this year.
The figures imply a sharp rise in the interest rate paid by the Government, as total spending will only rise slightly and the deficit is due to be cut.
Public spending is due to rise from £651bn to £693bn in 2014-15 excluding capital expenditure and £702bn to £740bn when capital expenditure is included.