The national debt burden: Why does it matter for the gospel?

In simple terms, national debt is the money a government borrows when it spends more than it earns. While debt can help fund public services and respond to crises, high and rising debt has real consequences – not just for economies, but for individuals, communities, churches and gospel ministry.

Where do countries borrow from?

Governments usually borrow by selling government bonds – essentially IOUs – to investors such as pension funds, banks and individuals, both at home and overseas. They may also borrow from international institutions like the World Bank or International Monetary Fund (IMF), or from other countries. These loans are repaid over many years, with interest, and are used to fund public services, investment projects, and emergency responses.

How much debt are we in?

Among the G7 economies, debt levels have been high for many years.

The UK’s government debt is now larger than the country’s annual economic output, placing it among the most indebted major economies. In practical terms, this means the nation owes more than it earns in a year.  

Why does this matter? 

1. High interest costs 

Debt comes with interest. The Treasury estimates that the UK will pay £135bn in interest payments alone in 2026-27, making these payments one of the government’s most significant areas of spending. 

This is money that cannot be spent on healthcare, education, infrastructure or social support. As a result, the UK now spends more on servicing its debt than on investing in areas such as strategic defence planning and a struggling social care system. When debt is high, even small rises in interest rates cost billions, tightening already stretched public finances. 

2. Less room to respond to shocks 

High debt makes it harder for governments to respond when crises hit.  Whether pandemics, wars or economic downturns. While the UK can still borrow, lenders may demand higher interest if debt keeps rising. This can lead to a damaging cycle where interest costs grow, and the burden is passed on through service cuts or higher living costs. 

3. Risks to long-term growth 

If debt grows faster than the economy, governments may need to raise taxes or reduce spending. Both can slow growth, contribute to rising inflation, and increase pressure on households, making life harder for families and communities over time. 

What does this mean for churches and ministries? 

• Growing demand for support: As public safety nets tighten, many churches are seeing rising need for food provision, debt help and pastoral care. According to CAP, around 12.5 million UK adults have received support from churches or Christian organisations in recent years. Kingdom Bank mortgage customers, such as Towy Community Church, are involved in supporting their communities in these ways.  

• Increased operating costs: Churches face the same cost pressures as everyone else.  Higher energy bills, food costs and maintenance expenses, while also supporting others. This ‘double squeeze’ can be deeply challenging. 

• Reduced government support: Cuts to public funding, including limits on schemes supporting church buildings, add further strain to ministry finances. 

What can we do?

Advocate with compassion. Isaiah 1:17 calls us to “seek justice” and care for the vulnerable. Speaking with MPs or local representatives about how economic pressures affect real people, and the ministries serving them, is a practical way to do this. 

Pray for wisdom. National debt decisions are complex and far-reaching. Pray for those in authority, asking God to guide leaders toward choices that are both financially responsible and protect the most vulnerable. 

Steward your resources well. Where we save and invest matters. When individuals and organisations save with Kingdom Bank, those funds help provide more affordable finance to churches and gospel ministries, freeing up resources for mission, care and community impact. 

Whilst the national debt can seem far removed from our everyday life, its impacts are felt by individuals and ministries across the country. By engaging well, we can show the love of Jesus to both those in power and those struggling in our communities.