“The cost of the energy price guarantee and higher interest costs were the biggest drivers behind the increase in the deficit, which at £13.5bn saw interest payments from the Bank of England to HM Treasury for quantitative easing go into reverse for the first time. Public sector net debt reached £2,460bn, on track to reach the OBR’s latest forecast of £2,571bn by the end of this financial year.
“The Autumn Statement last week highlighted how constrained the Chancellor is by the accumulation of debt, which saw him compound the economic misery facing the country by cutting back on public investment over the next five years. The Government is short of money and the potential for further tax rises in the Spring Budget should not be discounted.”
Notes to editors:
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