Please see below for the Chief Secretary to the Treasury's response to the Public Sector Finances release for August 2024.
Chief Secretary to the Treasury Darren Jones said: “When we came into office, we inherited an economy that wasn’t working for working people.
“The data shows the highest August borrowing on record, outside the pandemic. Debt is 100% of GDP, the highest level since the 1960s.
“Because of the £22 billion black hole in our public finances, we have inherited this year alone, we are now taking the tough decisions now to fix the foundations of our economy, so we can rebuild Britain and make every part of the country better off.” In 2023-24, the PSND (headline debt) had risen significantly to 98.3% of GDP.
This is a significant increase from 64.7% which it was in 2009-10. Borrowing was 4.5% of GDP in 2023-2024. Debt interest costs amounted to £106.7bn in 2023-24.
If debt interest payments were a government department, its departmental budget would be the second largest only to Department of Health and Social Care. Debt interest costs reached 4.4% of GDP in 2022-23, levels not seen since 1948.
