Conservative leader Kemi Badenoch has challenged Prime Minister Andy Burnham over UK debt interest, claiming that servicing government debt costs more than spending on schools, the Army and policing combined.
By Vincypowa News Staff
Speaking during Prime Minister’s Questions on October 21, Badenoch said: “We are spending more on interest payments than we do on schools, the Army and the police combined.” She urged the government to reduce spending and borrowing, including the welfare bill.
UK debt interest and the public finances
Official figures show substantial pressure on the public finances. The Office for National Statistics recorded £10.9 billion in central government debt interest payable in September 2026, the highest September figure since monthly records began in 1997, before adjusting for inflation. That was £1.6 billion above September last year.
However, the UK debt interest figure does not represent money entirely paid out during September. It includes £4 billion in inflation-related increases to the value of index-linked government bonds, which are recorded as costs before payment at redemption.
Public sector net debt provisionally reached £3.005 trillion, crossing £3 trillion for the first time. As a proportion of the economy, however, debt fell to 94% of GDP, down 0.7 percentage points from a year earlier.
Borrowing between April and September totaled £97.8 billion. That was £4.4 billion lower than during the same period last year, although £6 billion above the Office for Budget Responsibility’s forecast.
Responding to Badenoch’s criticism over UK debt interest and borrowing, Burnham defended his government’s record. He pointed to canceling the digital identification program, removing VAT from electricity bills and decisions intended to establish a national care service. He also cited economic forecasts and falling unemployment in support of his approach.
Badenoch’s comparison of UK debt interest with spending on public services requires further scrutiny. A reliable assessment would need figures covering the same financial year, with clear definitions of schools, Army and police spending.
The exchange comes ahead of Chancellor John Healey’s Budget on October 28, when the government will set out its next decisions on taxation and public spending.
Related reading: Our SVG explainer examines what debt-to-GDP and debt service actually mean, two concepts relevant to understanding government finances.
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