UK long-term borrowing costs could halve chancellor’s budget headroom
UK long‑term borrowing costs have risen sharply, with the 30‑year gilt yield reaching its highest level since 1998. The increase, driven by global market pressures, could cut the Treasury’s fiscal flexibility in half, limiting the chancellor’s ability to fund new spending. Finance minister John Healey now faces a challenging environment for budgeting in the coming fiscal year amid rising inflation concerns.