Her claims came despite the latest official projections which suggest there will be an increase in debt over the next five years.
The Office for Budget Responsibility (OBR) said in November that debt is forecast to climb as a percentage of national income from 89% in 2023/24 to 92.8% in 2028/29.
Ms Trott was presented with the OBR forecast during an interview on BBC Radio 4’s PM programme – and responded by saying she had “different figures”.
She said the prime minister’s central pledge was that “debt needs to be falling over the five-year fiscal forecast as a percentage of GDP, which it is”.
When challenged, Ms Trott appeared to say quietly “I’m not sure” – to which presenter Evan Davis said: “This is really basic… I’m amazed that you don’t know that debt is rising.”
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The minister replied: “I think I need to have the figures. I’ve got different figures which… I think we just need to… yeah.”
Image: Treasury minister Laura Trott has been accused of not knowing the ‘basic facts’ of her job
Speaking to broadcasters on Friday, the prime minister appeared to defend Ms Trott.
Asked how the public could have confidence in the economy following the minister’s remarks, Mr Sunak said: “Debt is on schedule to fall as measured by the independent Office of Budget Responsibility, which they’ve affirmed at the last autumn statement that the chancellor gave.
“But our plan for the economy is working – inflation has come down from 11% to 4%. Mortgage rates are starting to come down, wages are rising and because economic conditions are now improving, we’ve been able to start cutting people’s taxes.”
‘It’s terrifying these people are in charge’
The OBR forecast Mr Davis cited says debt will start to fall in the latter half of this decade, but it will still be higher in five years than it is currently.
The projection is that debt will rise from 89% of GDP now to 93.2% in 2026/27. It will then decline in the final two years to 92.8% of GDP by 2028/29.
This was highlighted by a Downing Street spokesperson when contacted for comment. They said it meant the government was “on track to meet our commitment to have debt falling in five years’ time”.
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What is fiscal headroom?
Mr Sunak’s description of debt as being “on schedule” to fall is different to the language he has used in the past, when he claimed it had already been reduced.
To measure debt, the government tends to use public sector net debt (PSND) excluding the Bank of England (BoE).
Public sector net debt on its own is forecast to drop by around 4% as a share of GDP over the next five years, but underlying debt, excluding the state bank, is set to rise by around 4% in the same period.
PSND, excluding the BoE, is forecast to drop slightly at the end of the five-year projection – from 93.2% in 2027/28 to 92.8% – but that is still higher than the 89% it is currently.
Labour said it was “terrifying” that people like Ms Trott were in charge of the country’s finances.
The party‘s shadow chief secretary to the Treasury, Darren Jones, said: “The Tories have crashed the economy and doubled the national debt over the last decade.
“This evening we discover that Laura Trott, Jeremy Hunt’s number two, doesn’t even know the basic facts of her job.
“It’s terrifying to think these people are not just in charge of the country’s finances, but still think they can lecture anyone else.”
Opinion by: Scott Buchanan, chief operating officer of Bitcoin Depot
A new proposal to install Bitcoin ATMs in federal buildings highlights an important question: Can crypto truly go mainstream without a stronger physical presence? For years, the industry has focused on software and decentralization, but its reluctance to invest in real-world infrastructure is starting to show. Without physical access points, crypto risks becoming an exclusive, insiders-only system, rather than the open alternative it sets out to be.
Everyone loves to talk about decentralization. There’s a good reason behind this. It defines the movement, shapes the technology, and supportsthe vision of a better financial system. While the industry focuses on code and algorithms, it lacks something basic. A decentralized system that exists only online is not genuinely decentralized.
Physical infrastructure is the missing link
Bitcoin’s physical infrastructure is the missing link. Without tools like ATMs, kiosks and access points at traditional retail locations, crypto remains out of reach for millions. Decentralization is not just about removing intermediaries. True decentralization requires expanding access. Without real-world touchpoints, even the most advanced network becomes limited to a closed circle of insiders.
For crypto to become mainstream, it must be easy to reach digitally and physically. That means showing up in places people already go and seamlessly integrating into people’s lives. Many groups in the American population still rely on cash or don’t have access to traditional banks. According to the latest Federal Deposit Insurance Corporation report, around 5.6 million American households don’t have a bank or savings account. Bitcoin ATMs give these users access without needing an app, a bank account or a crash course in blockchain. Most crypto tools today assume a level of financial fluency and infrastructure that millions simply do not have. The result is a digital-only ecosystem that locks out newcomers and widens the divide between early adopters and everyone else.
User-friendly screen in the right place
Physical infrastructure helps address this issue. A Bitcoin ATM in a grocery store or gas station is not just a convenience but a bridge to financial inclusion. It is an invitation to someone who has never bought crypto, telling them they can participate. No bank, no broker, just a user-friendly screen in a familiar place.
These machines also generate new economic activity. Local businesses benefit from increased foot traffic as the kiosks create passive revenue. For many communities, they provide access to a parallel financial system that was previously out of reach. This is a tangible example of crypto’s real-world utility. It is already happening, and it is measurable.
The crypto industry’s blind spot
The industry often treats physical infrastructure like an afterthought. The obsession with building new digital solutions has created a blind spot. Innovation without usability builds systems that serve the few but exclude the many. If someone can buy Bitcoin (BTC) at the same place they buy their morning coffee, that is when crypto stops feeling like an obscure digital asset and starts becoming part of everyday life.
As governments increase regulation, trusted and transparent interfaces will become more important. When operated within regulatory frameworks, Bitcoin ATMs offer a way to provide access between traditional finance and digital assets. They are familiar, easy to monitor and offer a more approachable entry point for the general public.
Like any financial tool, Bitcoin ATMs have drawn scrutiny, particularly in cases where bad actors use them. Rather than dismissing the machines themselves, we should focus on investing in better oversight, stronger consumer education and smarter regulation. The overwhelming majority of people who use Bitcoin ATMs do so for legitimate reasons: to send remittances, to move money securely or to access digital assets without traditional banking barriers. Building trust does not mean avoiding or dismantling physical access, but improving it.
The first time someone uses Bitcoin should not involve reading a white paper or navigating a tutorial. It should be as familiar as using an ATM or tapping a payment terminal. This is not an argument against innovation. Software and protocols will continue to evolve and play an important role. Physical infrastructure provides something those tools cannot: trust through presence. When people can see and use crypto in their neighborhood, at a store they already visit or in a format they already understand, it changes how they think about crypto and who it is for.
According to Coin ATM Radar, there are over 30,000 Bitcoin ATMs in the US. It’s a meaningful start, but still only a small step toward widespread access.
Crypto’s long-term success will depend not just on innovation but also on inclusion. That means building more than networks; it means building presence. When people can interact with crypto in the physical world, it stops being abstract and becomes usable. That is how digital finance becomes everyday finance.
Opinion by: Scott Buchanan, chief operating officer of Bitcoin Depot.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
The Katana Foundation, a nonprofit focused on decentralized finance (DeFi) development, is launching its private mainnet, aiming to unlock greater crypto asset productivity via deeper liquidity and higher yields for users.
The Katana Foundation launched a DeFi-optimized, private blockchain, Katana, on May 28, incubated by GSR Markets and Polygon Labs, with the public mainnet launch set for June.
The new blockchain will enable users to earn higher yields and explore DeFi in a “unique, optimized yield environment” that unlocks latent value through an ecosystem that makes every digital asset “work harder,” according to an announcement shared with Cointelegraph.
“DeFi users deserve ecosystems that prioritize sustainable liquidity and consistent ‘real’ yields,” wrote Marc Boiron, the CEO of Polygon Labs and core contributor at Katana, adding:
“Katana’s user-centric model turns inefficiencies into advantages, establishing a truly positive-sum environment for builders and participants alike.”
Source: Katana
Katana aims to solve the crypto industry’s liquidity fragmentation issue, which can cause significant price slippage, as one of the main barriers limiting institutional DeFi participation
To reduce the value slippage in DeFi, Katana’s blockchain concentrates the liquidity from numerous protocols and collects yields on all potential sources to create an ecosystem with deeper liquidity and more predictable lending and borrowing rates.
2025 Institutional Investor Digital Assets Survey. Source: EY-Parthenon
Institutional participation in DeFi is set to triple over the next two years to 75% from 24% of 350 surveyed institutional investors, according to management consulting firm EY-Parthenon.
To tackle the growing institutional liquidity needs, Katana’s liquidity pool is composed of multiple protocols, including lending protocol Morpho, decentralized exchange (DEX) Sushi and perpetual DEX Vertex, enabling users to trade “blue-chip assets” without needing crosschain transfers.
Katana has also incorporated Conduit’s sequences and Chainlink’s decentralized oracle network.
Katana to compound DeFi yield from “Ethereum-based opportunities”
Katana aims to boost sustainable yield by building a cohesive DeFi ecosystem. For instance, VaultBridge deploys bridged assets into overcollateralized, curated lending strategies on Ethereum via Mopho to earn yield, which is routed back and compounded on Katana.
The protocol will reinvest network fees and a portion of application revenue back into its ecosystem.
“This reduces reliance on short-term incentives, generates consistent yield, and as it grows, acts as an increasingly stable backstop during periods of volatility and liquidity shocks,” Polygon Labs’ Boiron told Cointelegraph, adding:
“Yield is distributed pro-rata to each chain using VaultBridge protocol based on their share of total deposits into VaultBridge.”
“So if Katana supplies 20% of the total vault deposits, it receives 20% of the yield back,” he added.
Katana will subsequently allocate its share of yield to users through boosted DeFi incentives across “core apps” such as Sushi, Morpho or Vertex. The yield is generated from “Ethereum-based opportunities and then enhanced through Katana’s core applications,” said Boiron.
Polygon Labs’ CEO previously criticized DeFi protocols for fueling a cycle of “mercenary capital” by offering sky-high annual percentage yields (APYs) through token emissions.
Beyond infrastructure-related limitations, regulatory uncertainty remains another significant barrier to institutional DeFi adoption.
2025 Institutional Investor Digital Assets Survey. Source: EY-Parthenon
Regulatory concerns were the main barrier to entry, flagged by 57% of institutional investors as the main reason for not planning to participate in DeFi activities.
The United Kingdom’s Financial Conduct Authority (FCA) has requested public feedback on proposed regulations for stablecoins and cryptocurrency custody.
In a May 28 request for comment, the United Kingdom’s financial regulator announced that its regulatory proposals are “the latest milestone on the road to crypto regulation.” The draft rules are based on prior roundtables and industry feedback. David Geale, executive director of payments and digital finance at the FCA, said the agency aims to support innovation while ensuring market trust:
“At the FCA, we have long supported innovation that benefits consumers and markets. At present, crypto is largely unregulated in the UK. We want to strike a balance in support of a sector that enables innovation and is underpinned by market integrity and trust.”
The FCA also noted it will work with the UK’s central bank to regulate stablecoins. Bank of England Deputy Governor Sarah Breeden said, “For those stablecoins that expect to operate at systemic scale, the Bank of England will publish a complementary consultation paper later this year.”
The FCA said that its rules “aim to ensure regulated stablecoins maintain their value.” The regulator said customers must be clearly informed about how the backing assets are managed. It also recommended that stablecoin issuers appoint independent third-party custodians to hold reserve assets:
“We propose to require issuers to provide holders with the right to redeem qualifying stablecoins at par value with the reference currency, irrespective of the value of the backing assets portfolio, with a payment order placed to an account in the name of the holder at the latest by the end of the business day following receipt of a valid request.“
Breeden added that the FCA’s proposals are part of a broader effort to build the UK’s stablecoin regime.
The FCA’s proposals also introduce new requirements for firms providing crypto custody services, as outlined in a separate discussion paper. The rules are designed to ensure that user assets are secure and can be accessed at any time:
“The FCA’s proposals would require firms providing crypto custody services, who have responsibility for keeping consumers’ crypto safe, to ensure they are effectively secured and can be easily accessed at any time.“
Proposed measures also aim to reduce both the likelihood and impact of crypto firms failing, both in the crypto custody and stablecoin sectors. The ongoing efforts also follow the recent revelation by UK Chancellor of the Exchequer Rachel Reeves of plans for a “comprehensive regulatory regime” aimed at making the country a crypto leader.