Debt interest payments will rise by almost half over the lifetime of this Parliament, according to chancellor’s Comprehensive Spending Review (CSR), although Britain is now paying £120m in interest a day.
Interest payments will be £63 billion in 2014-15, despite the savage cuts announced in the CSR. This compares with payments of £43 billion 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. (article continues below)
Public spending is due to rise from £651 billion to £693 billion in 2014-15 excluding capital expenditure and £702 billion to £740 billion when capital expenditure is included.