Debt interest cost 8.8p for every £1 the government raised in 2025-26
Central government debt interest as a share of total public sector receipts, UK, 1948-49 to 2030-31. Shown as pence per £1 raised.
Latest figures
| Series | Period | Value |
|---|---|---|
| Debt interest per £1 raised | 2025-26 | 8.8p |
Findings
Notes
- Debt interest is central government debt interest net of the Bank of England's Asset Purchase Facility (APF). This removes interest the government pays to itself on gilts bought through quantitative easing.
- Receipts are public sector current receipts: all taxes plus other income such as interest and dividends.
- Part of UK debt is index-linked to RPI inflation, so interest costs rise quickly when inflation is high, as in 2022-23.
Sources
More on public finances
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- A full-time worker on typical pay of £39,863 paid 19.2% of it in income tax and National Insurance in 2025-26
- Public spending on services was £1,228bn in 2025-26
- Income tax made up 26.7p of every £1 the public sector raised in 2025-26
- The top 1% of income tax payers paid 27.2% of all income tax in 2023-24
- The government spent 44.5% of GDP and raised 40.1% in 2025-26
- Social protection and health were the largest areas of public spending in 2025-26
- Public sector net debt was 93.3% of GDP in 2025-26
- Spending on debt interest rose by £79bn after inflation between 2020-21 and 2025-26, more than any other area