The UK budget

On Wednesday, UK taxpayers will learn how their government intends to pick their pockets in the next tax year. The economic and political consequences are likely to be brutal.

The chart of the UK’s ultra-long gilt sums up the chancellor’s dilemma when she delivers her budget (officially the Autumn statement) on Wednesday. Not only is the cost of government borrowing remaining stubbornly high, but any competent chart analyst will tell you that it is set to go significantly higher. Already, the Office for Budget Responsibility (OBR) estimates that interest at £111.2bn and 8.3% of total public spending is one of the largest items in annual managed expenditure.