Long-Term Government Borrowing Costs Leap to 28-Year High Ahead of Budget
- On Tuesday, September 1, 2026, UK government long-term borrowing costs reached 28-year highs as 30-year gilt yields jumped to 5.89%, pressuring Prime Minister Andy Burnham ahead of next month's Budget.
- Uncertainty surrounding the ongoing Iran war and rising inflation concerns fueled a global bond sell-off, pushing borrowing costs to similar highs across the USA, Japan, and Europe.
- Kathleen Brooks, research director at investment company XTB, told the BBC News Channel: "Of course, this is red lights flashing." Record government debt makes these uncomfortable times for Chancellor John Healey.
- Rising borrowing costs reduce the government's fiscal headroom, limiting the amount Healey can spend on consumer-friendly measures to ease the cost of living before the Budget.
- Burnham will face MPs on Tuesday for the first time as leader, while Downing Street maintains fiscal discipline is the "bedrock" of Britain's economic stability and national security.
16 Articles
16 Articles
Healey facing £6bn hit as UK borrowing costs reach post 2008 high
UK borrowing costs have hit their highest level since the financial crisis as gilts were swept up in a mass rout across global bond markets. The UK government is set to pay a higher rate on debt interest as 10-year gilt yields, the benchmark for borrowing costs, were up by as much as 15 basis [...]
UK long-term borrowing costs hit highest since 1998 ahead of October Budget
Long-term government borrowing costs have risen to a 28-year high, putting further pressure on Prime Minister Andy Burnham ahead of his first Budget next month. The yield on a 30-year gilt — a loan to the British government — rose to 5.89%, the highest since 1998. The effective cost of borrowing…
When the British government is about to announce the budget plan, it first comes with bad news: the cost of government borrowing is clearly rising. According to Yahoo Finance, on September 1 (Tuesday), the yield on UK 30-year government bonds once rose to 5.89%, the highest level since 1998; the 10-year government bond yield also rose to 5.223%, the highest level since 2008.
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