Economy alert: Andy Burnham to 'preside over highest debt interest bills on record'

Prime Minister Andy Burnham is set to preside over the second-largest average annual debt interest bill of any occupant of Number 10 in recorded history, according to fresh analysis published by the TaxPayers' Alliance.

The research, drawing on current Office for Budget Responsibility (OBR) forecasts and assuming the present parliament runs its full course, projects that the annual cost of servicing government debt under Burnham will average £112.8billion per year in 2025-26 prices.

Only former PM Rishi Sunak's completed tenure saw higher figures, with average yearly payments reaching £121.5billion in real terms during his time in office.

In the 2025-26 financial year alone, the government spent £109.3 billion on debt interest — a sum that surpassed the entire projected cost of HS2, estimated at £102.7 billion.

That single year's interest bill would also have been sufficient to cover the cost of repairing every pothole on roads across England and Wales nearly six times over.

The scale of these payments meant that more than eight per cent of all Government expenditure went towards servicing debt, the think tank claims.

Put another way, for every £12 the state spent, more than £1 was absorbed by interest costs rather than directed towards public services, tax reductions or investment.

The four costliest years for debt interest on record have all fallen since 2022-23, with the peak reaching £127.1billion in real terms during that year.

Compared to the long-run average of £45.7billion annually, measured from 1955-56 to 2025-26, last year's payments were 2.4 times higher.

In 2025-26, the £109.3billion interest bill exceeded the combined proceeds from corporation tax, which brought in £95.1billion, and alcohol duty, which yielded £12.4billion.

The TPA is urging Burnham to curb expenditure and bring down borrowing in order to place the public finances on a sustainable footing.

Darwin Friend, research director of the TaxPayers' Alliance, said: "If current forecasts hold, Andy Burnham will preside over one of the highest debt interest bills of any prime minister on record.

"Taxpayers are already spending more than £100billion a year just servicing the national debt, which is money that cannot be used to ease the pressure on households.

"Burnham must not make a dire situation worse with yet more borrowing and spending. He should get a grip on the public finances and provide the breathing space for Britain that he promised."