The national debt is on course to hit £4trillion early in the next decade as the benefits bill rockets and Labour embarks on a massive borrowing binge.
Official data last week showed government debt is just below £3trillion – a milestone it looks set to hit in the coming months – having been £350billion at the turn of the century.
The figure is then set to hit £3.5trillion in 2030-31, according to forecasts by the Office for Budget Responsibility (OBR), meaning it has risen tenfold in 30 years.
Analysis of International Monetary Fund projections by Nomura economist George Buckley suggest it could hit £4trillion as soon as 2033.
The figures underline the challenge facing Chancellor John Healey as he plots his first Budget in October amid turmoil on the bond markets that has sent borrowing costs soaring.
