New UK leader to face highest government debt in 60 years

By DANICA KIRKA
Associated Press

LONDON (AP) — British government debt rose to the highest level in almost 60 years last month and retail sales slumped. That’s underscored the scale of the economic challenges facing whoever replaces Prime Minister Liz Truss after her administration imploded from a failed financial plan. The Office for National Statistics said Friday that public borrowing rose to 98% of economic output in September as rampant inflation increased interest payments on what the government owed. That’s higher than anytime since 1963, when Britain was still paying off the debts accumulated during World War II. Deepening the sense of gloom were figures showing that retail sales fell for a second straight month and are now 1.3% below pre-pandemic levels.