The UK is staring down a debt pile of roughly £2.9 to £3 trillion, with annual interest payments running at approximately £110 billion. The government is spending more on servicing its debt than it does on defense, and that number is projected to surpass £130 billion by 2030.
This is the fiscal reality awaiting whoever sits in 10 Downing Street next. And that person might be Andy Burnham, who won the Makerfield by-election in June 2026 and is positioning himself as the next Labour prime minister.
The numbers behind the squeeze
Government borrowing hit £23.3 billion in May 2026, blowing past forecasts. Burnham has committed to upholding fiscal rules that require balancing day-to-day spending with revenues. His advisers have reportedly pushed for increased infrastructure borrowing, even as he publicly commits to fiscal rules.
Why crypto markets should be paying attention
