UK long-term borrowing costs surge to 28-year high ahead of Budget
🐿️ The Squirrel's Take
The chancellor now faces a classic nut hoarding dilemma: defend fiscal rules by slashing spending or invest despite higher costs, risking a market backlash.
💡 Why it matters
Sustained high borrowing costs could force tax rises or spending cuts, directly impacting public services and the government's ability to invest in infrastructure and net zero.
The yield on 30-year UK gilts hit their highest level since 1998 amid a global bond sell-off driven by inflation fears. This surge could almost halve Chancellor John Healey's fiscal headroom ahead of the October Budget, according to economists.
📡 Where we spotted it (3)
BBC News
UK long-term borrowing costs highest since 1998 ahead of October Budget
11d ago
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The Guardian
UK long-term borrowing costs could halve chancellor’s budget headroom
11d ago
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The Guardian
Andy Burnham to face first PMQs as borrowing costs rise – UK politics live
11d ago
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