Interest on UK gilts rises sharply, says Health Secretary

Interest on UK gilts, or bonds, which the government sells to international investors to raise the money it needs, has risen sharply, he said. The inflation rate is currently at double-digit levels, because of the fact that many gilts are index linked, so the government's repayments are in line with the Retail Prices Index measure of inflation.

He said that the government's borrowing would fall when the energy support schemes are no longer needed and inflation is thought to have peaked.

She said borrowing was well above what economists had predicted, debt interest payments were at an eye-watering level and government spending was high, and there were pressures from the weak economy. Mr Hunt said that the government was helping millions of families with the cost of living, but he said last week that inflation might have turned a corner, and that it is likely to fall this year as energy prices fall.