Chancellor faces Budget balancing act as inflation hits 3.5% and debt tops £3 trillion

New economic figures show inflation at 3.5%, with forecasters expecting it to peak at 4.2% next year, while public debt has officially topped £3 trillion for the first time. Borrowing is running ahead of forecasts due to rising spending and interest costs, presenting a challenge for the Chancellor's upcoming Budget which must balance consumer support against market confidence.