UK government borrowing in April was £24.3bn, £4.9bn higher than last year and exceeding the £20.9bn forecast by the Office for Budget Responsibility. Higher spending on benefits offset increased tax receipts, according to the ONS.
The pound dropped 2% to a 5-week low at $1.336 amid expectations of a leadership challenge to UK PM Keir Starmer by Manchester Mayor Andy Burnham, sparking concerns over potential loosening of fiscal rules and increased borrowing.
Housing Secretary Steve Reed defends Keir Starmer amid popularity concerns, urging Labour to focus on national change over internal conflicts, as Andy Burnham is tipped for a potential leadership bid.
More than 70 Labour MPs have called on Keir Starmer to resign.
The cost of UK government borrowing has hit a high not seen in decades as Prime Minister Keir Starmer faces mounting threats to his leadership and the oil price rises.
The cost of UK government borrowing has hit a high not seen in decades as Prime Minister Keir Starmer faces mounting threats to his leadership and the oil price rises.
The cost of UK government borrowing has hit a high not seen in decades as Prime Minister Keir Starmer faces mounting threats to his leadership and the oil price rises.
Rolling coverage of the latest economic and financial newsStarmer on the brink as cabinet ministers urge him to quitNewsflash: UK government borrowing costs have risen at the start of bond market trading.Political uncertainty is gripping the markets, after Keir Starmer was urged to set out an orderly timetable for his departure ahead of this morning’s cabinet meeting.The market’s main concern here, and the reason for this Gilt underperformance, is twofold – firstly, that a new PM would shift to the left, and loosen/scrap the UK’s current fiscal rules; and, secondly, that doing so would exacerbate the UK’s inflation problem.With political uncertainty likely to persist for a while, and the fiscal rhetoric only set to ramp up, those considering buying the dip in Gilts may be minded to wait a while. Continue reading...
Darren Jones says the prime minister is ‘listening to colleagues’, and does not rule out PM announcing resignation timetableStarmer on the brink as cabinet ministers urge him to quitThere will be huge interest in what happens to UK government borrowing costs today. Graeme Wearden is covering this on his business live blog.Yesterday gilt yields (the cost of borrowing for the Treasury) edged up, in a move attributed to the political uncertainty at Westminster. Continue reading...
Rolling coverage of the latest economic and financial newsStarmer faces fight to survive as Streeting and Rayner eye leadership bidsGovernment bond yields are rising across the board this morning, although UK debt is leading the losses.US and eurozone borrowing costs have also pushed higher, on concerns that the lack of progress towards ending the Iran war will lead to higher oil prices, more inflation, and higher interest rates.Inflationary headwinds as a consequence of the conflict in the Middle East are weighing on a number of UK businesses. We have already heard from companies like Next, Asos, Sainsbury’s and WH Smith which have warned of higher costs. Now shares in Victrex have shed almost 6% today on the back of a profit warning. It anticipates weaker annual profit before tax of between £42m and £44m for fiscal 2026, falling short of estimates for £46.6m. First half underlying pre-tax also profit dropped by 18% to £19m.The UK mid-cap polymer maker says the Iran war will push up energy and raw material inflation. The company is responding by reducing headcount by 10% to cut costs elsewhere. Continue reading...
Rolling coverage of the latest economic and financial newsUK goverment borrowing costs have risen at the start of trading, lifted by inflation concerns and uncertainty over Keir Starmer’s future.The yield, or interest rate, on UK 30-year bonds is up around six basis points (0.06 of a percentage point) at 5.63%.The triggering of a leadership election, and a subsequent change in Prime Minister, leaves the GBP [the pound] and Gilts [UK government bonds] not only grappling with a ratcheting up of political uncertainty, but also being forced to face up to a likely more left-wing successor to Starmer.Such an outcome would, in all likelihood, lead to a substantial loosening of the ‘fiscal rules’, along with considerably higher government spending, and even higher taxes, possibly even including a manifesto breach in raising NI, VAT, or income tax. Continue reading...
Bond yields drop as market fears ease that Labour leader will be replaced by a more leftwing rival Elections 2026 – live updatesBusiness live – latest updatesUK government borrowing costs fell and the pound rose on Friday as Keir Starmer vowed to remain as prime minister despite the Labour party losing hundreds of council seats across England.Investors calculated that some of the intense pressure on Starmer’s leadership had eased, as Labour appeared on track for smaller losses than election experts had predicted. Continue reading...
Bond yields drop as market fears ease that Labour leader will be replaced by a more leftwing rival Elections 2026 – live updatesBusiness live – latest updatesUK government borrowing costs fell and the pound rose on Friday as Keir Starmer vowed to remain as prime minister despite the Labour party losing hundreds of council seats across England.Investors calculated that some of the intense pressure on Starmer’s leadership had eased, as Labour appeared on track for smaller losses than election experts had predicted. Continue reading...
Bond yields drop as market fears ease that Labour leader will be replaced by a more leftwing rival Elections 2026 – live updatesBusiness live – latest updatesUK government borrowing costs fell and the pound rose on Friday as Keir Starmer vowed to remain as prime minister despite the Labour party losing hundreds of council seats across England.Investors calculated that some of the intense pressure on Starmer’s leadership had eased, as Labour appeared on track for a smaller losses than election experts had predicted. Continue reading...
Bond yields end the day flat as fears ease that Labour leader will be replaced by a more leftwing rivalElections 2026 – live updatesBusiness live – latest updatesUK government borrowing costs fell and the pound rose on Friday as Keir Starmer vowed to remain as prime minister despite the Labour party losing hundreds of council seats across England.Investors calculated that some of the intense pressure on Starmer’s leadership had eased, as Labour appeared on track for smaller losses than election experts had predicted. Continue reading...
UK government borrowing fell by £19.8bn to £132bn in the year to March, slightly below the £132.7bn predicted by the Office for Budget Responsibility. However, analysts warn borrowing will rise to around £145bn this year due to the energy price shock from the Iran war, with the IMF predicting the UK would be hit hardest among advanced economies. Interest payments are expected to increase by £12bn, with potential additional borrowing needed for household energy support.
UK government borrowing fell to £132bn in the year to March 2026, down almost £20bn from the previous year. The figure came in slightly below the £132.7bn forecast by the Office for Budget Responsibility. March borrowing alone was £12.6bn, the lowest for that month since 2022. Borrowing as a percentage of GDP fell to 4.3%, its lowest level since 2019-20, just before the Covid pandemic.
Rolling coverage of the latest economic and financial newsThe oil price is rising above $100 a barrel this morning, as supplies through the strait of Hormuz remain badly disrupted by the Iran war.Yesterday, Iranian forces have seized two ships in the crucial waterway as the US and Iran both doubled down on imposing separate blockades of the shipping waterway. Continue reading...
