LONDON, March 22 — UK state borrowing fell in February but debt interest ballooned on soaring inflation, data showed today on the eve of a budget update seeking to tackle surging living costs.
That marked an improvement from £15.5 billion in February one year ago, when the public purse was plagued by vast pandemic costs. Russia’s Ukraine invasion has sent crude oil, domestic energy and food prices rocketing, exacerbating decades-high British inflation and sparking Bank of England interest hikes that have hiked state borrowing costs.
Following the figures, finance minister Rishi Sunak’s hands could be further tied regarding major giveaways in tomorrow’s budget.
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