𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

The “staggering” cost of the annual interest paid on Britain’s national debt is the equivalent of the total income tax that would be collected from nearly 18million full-time workers on the average wage, according to a devastating new analysis. Britain’s debt interest bill is forecast to reach nearly £101billion in 2026-27 – up 158% from £39billion a decade ago.

The Institute of Economic Affairs (IEA) warns this is equivalent to the total income tax due from 17.8million typical full-time workers earning £40,911 a year. The IEA further warns that the burden will get even heavier on taxpayers. Annual debt interest payments are expected to hit £120.3billion in 2029-30, requiring the equivalent of the annual income tax bills of 21.2million workers.

Valentin Boboc, chief economist at the IEA, said: “Britain needs the equivalent of another 3.4million taxpayers just to cover the soaring cost of servicing our national debt over the next three years. The scale of the problem is staggering.

“The equivalent of the entire annual income tax bills of almost 18million workers is now being swallowed up by debt interest alone, before a single penny is spent on schools, hospitals or policing. This is the price of years of excessive borrowing and spending.

“Every pound spent servicing debt is a pound that cannot be used to ease the tax burden or fund public services. Without serious action to get public spending under control, taxpayers will continue paying more simply to stand still.”

Richard Fuller, Shadow Chief Secretary to the Treasury, said: “This is an astonishing indictment of Labour’s economic failure. The tax of millions is being swallowed up by the interest on our national debt.

“Working people are being squeezed as the bill keeps growing. Britain cannot tax its way out of a debt crisis, which is why the Conservatives’ ‘golden economic rule’ would put half of every pound saved from spending cuts towards bringing down the deficit.

“Instead of maxing out the nation’s credit card like Labour, we will take the tough decisions to fix the country’s finances and deliver a stronger economy and stronger country.”

A Treasury spokesperson said: “The Chancellor is committed to the fiscal rules and getting debt and borrowing down so that we spend less on debt interest, and more on people’s priorities. Borrowing has fallen to its lowest level in six years; the OBR has confirmed it continues to fall over the forecast, and the IMF has backed our plan to get the deficit down.”