Rise In UK Borrowing Costs - Does It Affect You And Me?

9th January 2025

All over the media yesterday was the news of increased costs for government borrowing. Governments sell bond to raise funds and smooth out spending. As the borrowing has increased so has the cost of interest payments to service this debt.

The knock on affect will be that interest rates may not come down as previously predicted or even increase again.

The Guardian covered the topic on 7 January 2025 -
www.kelvinprobe.com

Richard Murphy commented on his blog in hard hitting item -
Borrowing costs are high because that's exactly what the Bank of England wants

United Kingdom national debt at Wikipedia

[url=https://committees.parliament.uk/publications/43596/documents/216595/default/]Managing government
borrowing - Public Accounts Committee[/url]

Will the UK ever pay off its national debt?
The national debt need never be repaid. The UK's national debt, which was established more than 300 years ago, need not be repaid. It benefits bankers and underpins the economy. Created by government spending exceeding tax collection, the debt also forms part of the national money supply.