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flag UK borrowing costs rose after Labour took office, but recent fiscal moves have reduced them, cutting debt faster than any G7 nation.

flag UK government borrowing costs have risen by up to £7 billion annually since Labour took office in 2024, as gilt yields surged over pre-pandemic levels amid market concerns and Bank of England bond sales. flag Long-term yields climbed 4.1 percentage points since 2022, outpacing other advanced economies. flag Recent fiscal tightening, including November’s tax increases, has eased anxiety, helping borrowing costs decline. flag The Treasury expects debt as a share of GDP to reach its lowest in six years, adding £21.7 billion in fiscal headroom.

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