Interest payments on UK debt soared to an August record of £8.2 billion last month, with public sector borrowing hitting £11.8 billion – nearly double the £6 billion predicted by the Office for Budget Responsibility (OBR) in May. Although still £2.6 billion less than August 2021…

Reacting to the figures this morning, Chancellor Kwasi Kwarteng emphasised he’s sticking to the plan: go for growth. He said:

“Strong economic growth and sustainable public finances going hand in hand. As Chancellor, I have pledged to get debt down in the medium term. However, in the face of a major economic shock, it is absolutely right that the government takes action now to help families and businesses, just as we did during the pandemic.”

The mini-budget is set for this Friday, where cuts to stamp duty, corporation tax and national insurance are all on the menu. The rumoured one percent cut to income tax is now expected to be held back until a full budget further down the line. Before all that, BEIS is set to announce its big plan to cap energy costs for businesses at around 9am this morning. Don’t expect that borrowing figure to go down any time soon. Stay tuned…