The British debt interest totaled 7.7 billion pounds in September ($8.5 billion at the current exchange rate), that is 2,500 million more than a year before, its level which is the highest since the start of monthly statistics in 1997.
The interest level takes on another relevance considering that since mid-2021, the state’s debt burden “increased considerablybut not because of an increase in debt”, but rather “largely because of the inflation“, commented the National Statistical Office (ONS) in a report on Friday.
The pound sterling that came to collapse up to 1%, after spiking up the previous day, it finally closed higher. The Bank of England had to intervene and buy Treasury bonds to prevent its collapse, after the government’s plan was criticized and mistrust was generated about the levels of debt it would face.
The country registers the worst inflation figures of the G7with a price increase of more than 10%zero growth, an energy crisis and an increase in precariousness.
This scenario weighed heavily on consumption and retail sales fell 1.4% in September, compared to August, a month in which the decline was even more marked and reached -1.7%.
After what Jeremy Hunt took over the Finance portfolio last week in an attempt to defuse the panic in the markets caused by the Truss program, the new minister warned that “very difficult decisions” would be necessary.
However, Truss’s resignation on Thursday puts Hunt’s plan on hold, as does his tenure.
Truss presented his resignation on Thursday after the financial crisis that unleashed his budget of tax cuts and increased spending, mainly to subsidize rates, in addition to the elimination of income ceilings for bank managers.
The prime minister had also eliminated taxes on fracking, with the aim of stimulating energy production. The level of inflation in the United Kingdom provoked marches in which they demanded that the Government “freeze prices, not people“.
The financial scenario that was unleashed forced the departure of the previous Finance MinisterKwasi Kwarteng.
The pConservative art he is preparing for a snap election of Truss’s successor by next Friday at the latest. The party has the first majority in the House of Commons, so its new leader would automatically assume the leadership of the Government.
Source: Ambito
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