Inflation pushes UK government interest costs in June to fresh record

Image source, Getty Images

Interest payments on UK government debt hit a new high in June.

Last month, the government paid interest on over 20 billion dollars.

Government borrowing in June was the second highest on record.

The Office for National Statistics said that borrowing was up 4% from a year ago.

The Chancellor said that there are risks to the public finances, including from inflation, with debt interest costs in June more than double the previous month.

"That's why the government has taken action to strengthen the public finances and in their latest forecast the Office for Budget Responsibility said we are on track to get debt down."

June's borrowing was the second-highest in the history of the monthly records, and was more than the OBR had forecast.

Higher inflation is to blame for the recent high levels of debt interest payments.

The retail prices index measure of inflation hit 12% in June and the interest paid on government bonds rose in line with it.