Britain’s public debt rose by 4 billion pounds to 13.5 billion ($16 billion) in October after the start of energy subsidies, according to data released on Tuesday (22).
In total, government debt, excluding public sector banks, reached £2.46 trillion at the end of the month, or 97.5% of British gross domestic product (GDP). This represents an increase of £148.3 billion from October 2021, but a fall of 0.5 percentage points in GDP year-on-year, according to the Office for National Statistics (ONS).
From mid-2021, the official body said, the loan interest has “increased substantially” due to higher inflation.
In October, interest payments were £6.1 billion, half of which was due to the impact of inflation.
“Energy subsidies are driving up debt again,” insist analysts at Capital Economics, noting that the October general finance report showed the government borrowing more money than last year, even as debt was already boosted by debt relief to cushion the effects of the pandemic.
Last week, the British government announced austerity measures to save £55 billion between public spending cuts and tax increases. The aim was to reassure markets worried about the ultra-liberal policies of the previous Conservative executive.
“The economic damage they (the Conservatives) have done to our country is enormous. They have put our public finances at risk,” criticized Labor opposition leader Keir Starmer.
“They have created a vicious circle of stagnation, which is why every crisis hits the UK harder than our rivals,” he added, confirming it was “the only G7 country now poorer than before the pandemic”.
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