Jump in government debt costs

INTEREST payments on government debt jumped by almost 40% last month as rocketing inflation continues to add to state borrowing, according to official data.

The Office for National Statistics (ONS) said government borrowing hit £4.9 billion in July.

It is significantly ahead of the predictions of analysts, who had forecast £2.8 billion in borrowing last month, and brings the total budget deficit for the year so far to £55 billion.

Nevertheless, borrowing was £0.8 billion below levels from the same month last year.