Chancellor Rachel Reeves has revealed the extraordinary sum Britain pays on debt interest. The UK spends more financing its debt than it invests in the armed forces and vital public services.

Speaking in the House of Commons as she delivered the spring statement, she declared that interest payments are now more than £105billion.

Firing a blast at the Conservatives, she said: “After they doubled the national debt, debt interest payments now stand at £105.2billion this year. That is more than we allocate to defence, the Home Office, and the Ministry of Justice combined. That is the legacy of the party opposite.

“So, the responsible choice is to reduce our levels of debt and borrowing in the years ahead so we can spend more on the priorities of working people and that is exactly what this Government will do.”

Insisting she would not turn away from her strategy for the national finances, she said: “Let me be clear: There is nothing progressive, there is nothing Labour about working people paying the price for economic irresponsibility.”

The Chancellor says that net financial debt is now expected to be 82.9% of GDP in 2025-26 and 83.5% in 2026-27. It is then due to fall to 82.7% in 2029-30.

This is due to leave the Government with “headroom” of £15.1billion by the end of the decade.

The Office for Budget Responsibility had forecast that under the original plans outlined in the autumn Budget the Chancellor was on course to miss her headroom target by £4.1billion.