Public Sector Debt

(asked on 19th July 2018) - View Source

Question to the HM Treasury:

To ask Her Majesty's Government what is their calculation of what the cumulative cost of debt interest would be by 2045/46 if they only balanced the current budget.


Answered by
Lord Bates Portrait
Lord Bates
This question was answered on 31st July 2018

The Managing Fiscal Risks document, published by the Treasury on the 17th July, projects that if the government only balanced the Current Budget every year from 2021-22, then after taking account of economic shocks, annual debt interest costs in 2045-46 would rise to 4.3% of Gross Domestic Product.

The cumulative cost of these interest payments from the current financial year to 2045-46 is projected to be £3.7 trillion.

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