Debt and £627 bn more debt is overwhelming the UK government

By johnredwood on December 10, 2025

According to the Budget Red book the government will borrow £627.8 bn more over the next five years. 2029-30 shows the lowest additional borrowing as much delayed tax rises are meant then to come into effect, after the election. Do people believe that?

At the same time the government over the five years needs to borrow at least £675 bn to repay debt that falls due. In total the bond market will be asked to subscribe for at least £1300 bn of new bonds. No wonder our government borrowing rates are the highest of the advanced countries.

So why does the Chancellor say our debt is coming down? Why so much extra spending? Why does she delay the main tax rises she wants until after the next election? How long will it take to revalue homes to be able to impose the Mansion tax on some 3 bed flats in central London? How long to consult and legislate to impose a tax on using battery and hybrid cars?

Why was there so little comment in her speech on how to control spending? Why no proper discussion of the productivity collapse this decade in public services? Why no detail on how she will spend the £3.25 bn planned for AI in the civil service? Why no plan to control steel losses? Why no mention of Bank of England losses? The OBR has upped its forecast of those losses to £288 bn from Q3 2022, or £164 bn net of earlier profits.

The extra borrowing she plans over 5 years would mean at least £25 bn more in annual interest payments. So why does she go on complaining about the £100 bn plus the government is already paying each year to service the debt when she plans so much more?

She makes a great deal out of the fraud and wrong payments made under various covid schemes which Labour supported at the time. She is finding it difficult to get the money back. Instead of implying this was some unique incompetence of a former government, she should see the latest figures for the annual loss on benefit fraud and overpayments, running at around £10 bn a year on her watch. Why doesn't she stop that if if stopping fraud is as easy as she thinks it could have been for the one off payments on lockdown to compensate people for loss of working incomes.