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.