Rachel Reeves is wrong about debt interest - Richard Murphy

30th September 2025

Rachel Reeves at the Labour Party conference.

"There is nothing progressive, nothing Labour, about government using one in every £10 of public money it spends on financing debt interest."

She used this claim to justify "tough choices" and the suggestion that there is no money left. That argument is both misleading and totally unnecessary.

The reality is that of the supposed £110 billion debt interest bill for 2025-26, much is not as Reeves wants people to believe it is. In particular, the cost of interest to the government is not fixed, as it is for individuals. It is, in large part, a political choice, and Reeves has tools she could use to cut it.

Here are five things she could do:

Read the article HERE

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https://www.taxresearch.org.uk/Blog/