Ruth Gregory, an economist at Capital Economics, said Tuesday’s figures painted a “dismal picture” of the fiscal situation in the UK. In the Budget, “many of the PM’s policy ambitions will be reined in or delayed to avoid big tax hikes and/or a backlash in the markets”, she predicted. Gregory said the UK’s debt interest payments were on track to hit 3.8 per cent of GDP in 2026-27, well above the average of 2.1 per cent in the 2010s.