UK debt interest payments hit record high in February

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Government interest payments hit a new record in February due to rising inflation.

February's interest payments were the highest since records began in 1997 and up from last year.

The Retail Prices Index measure of inflation reached 7.8% in January.

Pressure is mounting on the Chancellor to take action to tackle soaring costs.

The Spring Statement on Wednesday will be the first time the chancellor will address the rising cost of living.

The government is paying more in interest on debt as a result of rising inflation.

Over the last couple of years, the government has borrowed billions of pounds to spend on measures designed to limit the impact of the Covid pandemic.

Mr Sunak said that the uncertainty caused by global shocks means that it is more important than ever to take a responsible approach to the public finances.

With inflation and interest rates still on the rise, it's crucial that we don't allow debt to spiral and burden future generations.

During the height of the Pandemic, government borrowing fell by £2.4 billion from the same month a year earlier, according to the Office for National Statistics.

February's borrowing figures were the second-highest on record.

It was more than the February 2020 level, which was before lockdowns were brought in.

Sir Charlie Bean, an economics professor at the London School of Economics, told the Today programme that the chancellor might have more wiggle room at the Spring Statement.

The government collected more taxes in February this year than in the same month last year.

If the Office for Budget Responsibility thinks the cost of living will change over the next few years, then Chancellor Rishi Sunak could have as much as 50 billion dollars to play with.