Rishi Sunak said underlying debt is expected to fall steadily from 83.5% of GDP in 2022/23 to 79.8% in 2026/27.
He added borrowing as a percentage of GDP is 5.4% this year, 3.9% next year, then 1.9%, 1.3%, 1.2% and 1.1% in the following years.
Mr Sunak told MPs:
The OBR has not accounted for the full impacts of the war in Ukraine and we should be prepared for the economy and public finances to worsen – potentially significantly. And the cost of borrowing is continuing to rise.
In the next financial year, we’re forecast to spend £83 billion on debt interest – the highest on record. And almost four times the amount we spent last year
Mr Sunak said that is why he will continue to “weigh carefully” calls for additional public spending.