Labour’s winter misery: UK debt mountain tops £3TRILLION for first time ever ahead of grim ‘tax-raising’ Budget – as inflation surges to 3.5% with interest rate pain looming

UK public sector debt has surpassed £3 trillion for the first time, while borrowing and inflation were both higher than expected. The figures add pressure ahead of the Budget, as the Government weighs how to manage public finances and households face the prospect of higher mortgage costs.

Borrowing reached £24.5 billion in September, £1.9 billion above the official forecast, and debt interest payments hit a record £10.9 billion for the month. Public debt rose by £91.7 billion over the year to more than £3 trillion, equivalent to 94 per cent of GDP; inflation reached 3.5 per cent in the year to September. The article says frozen tax thresholds could increase tax receipts as prices and wages rise, while leaving families with less spending power.