Britain is stuck in a debt doom loop. Rachel Reeves must break a manifesto pledge to get us out of it, writes Ticiana Alencar

There is one week to go until the Budget, at which point the Chancellor will lay out how she has decided to fill what she has called a ‘black hole’ in the nation’s finances.

Policy Exchange’s recent report Beyond Our Means sets out the state of Britain’s fiscal crisis. Public debt is close to 100 per cent of GDP, and interest payments are forecast to be £111bn in 2025-26. Three quarters of the government’s budget deficit is made up of debt interest alone: we are stuck in a debt doom loop. Borrowing more is off the table, leaving the Chancellor the choice of either raising taxes or cutting spending.

Reports suggest that Rachel Reeves intends to continue the

© City A.M.