Inflation pushes UK government interest costs to fresh record

Rising inflation caused interest payments on government debt to reach their highest level on record in June.

Interest payments paid by the government for the last month totaled £19.4 billion.

It sent government bonds for the month up year-on-year to the second-highest June level on record.

Borrowing – the difference between spending and tax receipts – totaled £22.9 billion over the month, up £4.1 billion from a year earlier, the Office for National Statistics said.