September interest on UK debt mountain hits record £7.7bn

By Samantha Allen

Published: October 21, 2022 | 9:00 AM GMT

Interest payments on the United Kingdom’s $2.45 trillion debt pile reached a new high last month, revealing the dire status of the public finances. Servicing the debt pile cost £7.7billion in September, well above analysts' expectations and the highest figure since comparable statistics began in 1997

In September, the cost of servicing the debt was £7.7 billion, which was significantly more than analysts’ predictions and the highest level since comparable figures began in 1997.

The staggering liabilities contributed to a £20 billion increase in government borrowing during the month, highlighting the magnitude of Chancellor Jeremy Hunt’s task as he prepares a Halloween budget with massive expenditure cutbacks and tax increases.

However, the spectacular demise of Liz Truss has sparked concerns that the new prime minister may delay or scrap the plans, causing significant volatility in currency and bond markets.

The new leader may not be selected until the following Friday, leaving them with only a weekend to examine the situation before the Budget is due. New Chancellor Jeremy Hunt vowed earlier this week to keep to date for the autumn budget due to be revealed on October 31

In September, servicing the debt pile cost £7.7 billion, which was significantly higher than analysts’ forecasts and the biggest sum since comparable figures began in 1997.

The staggering liabilities contributed to a £20 billion increase in government borrowing last month, highlighting the magnitude of Chancellor Jeremy Hunt’s task as he prepares a Halloween budget with massive expenditure cutbacks and tax increases.

The Office for National Statistics (ONS) reported that borrowing in September was only exceeded at the height of the Covid-19 outbreak. The eye-watering liabilities helped push government borrowing to £20billion over the month, underlining the scale of the task facing Chancellor Jeremy Hunt as he draws up a Halloween Budget with huge spending cuts and tax rises

Economists had predicted £17 billion in borrowing for the month, but the actual amount was significantly more.

It was also much more than the Office for Budget Responsibility’s March forecast of £14.8 billion.

About Samantha Allen

Samantha Allen is a seasoned journalist and senior correspondent at TDPel Media, specializing in the intersection of maternal health, clinical wellness, and public policy. With a background in investigative reporting and a passion for data-driven storytelling, Samantha has become a trusted voice for expectant mothers and healthcare advocates worldwide. Her work focuses on translating complex medical research into actionable insights, covering everything from prenatal fitness and neonatal care to the socioeconomic impacts of healthcare legislation. At TDPel Media, Samantha leads the agency's health analytics desk, ensuring that every report is grounded in accuracy, empathy, and scientific integrity. When she isn't in the newsroom, she is an advocate for community-led wellness initiatives and an avid explorer of California’s coastal trails.