Particle.news
Download on the App Store
3 ARTICLES
·
last wk.

UK Gilt Yields Hit 17-Year High, Escalating Fiscal Crisis

Chancellor Rachel Reeves faces mounting pressure to stabilize public finances as borrowing costs surge and market confidence wanes.

Image
Image
Image

Overview

  • Ten-year UK gilt yields have spiked to 4.8%, the highest level since 2008, intensifying concerns over fiscal stability.
  • Government borrowing in April reached £20.2 billion, marking the fourth-highest April figure since records began in 1993.
  • The UK’s debt-to-GDP ratio has climbed to 95%, with monthly debt servicing costs now at £9 billion, further straining public finances.
  • Inflation rose to 3.5% in May, while first-quarter GDP growth of 0.7% is seen as temporary, driven by exporters rushing ahead of US tariffs.
  • Chancellor Reeves faces difficult trade-offs in the upcoming autumn Budget, with tax hikes and spending cuts likely needed to restore market confidence.