Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the Bank of England's decision to retain interest rates at 4.25 per cent on the cost of public sector borrowing.

The Treasury does not publish forecasts of the economy or public finances; the Office for Budget Responsibility (OBR) is the UK’s official forecaster and provides independent analysis of the UK’s public finances.

In March 2025 it was forecast by the OBR that debt interest spending would reach £111.2bn in 2025-26.

At the Budget last Autumn, the government set out a clear fiscal strategy to stabilise the public finances and underpin growth. The fiscal rules, which provide stability, help to keep interest rates low and prioritise investment to support long-term growth, are non-negotiable. This is the responsible choice – to reduce our levels of borrowing in the years ahead, so we can spend more on our public services, more on the priorities of working people and less on servicing debt.

The OBR will publish an updated forecast later this year.