Borrowing cost surge leaves Healey with £10bn headache

5:31PM Worst day for FTSE-250 since March Link copied to clipboard The FTSE-250 plunged in its biggest one-day loss since March as inflation fears sent global borrowing costs soaring.London’s midcap stock index dropped by 1.67pc on Tuesday, its largest fall since the start of the war in Iran sent global markets into tu

The prime minister faces new challenges ahead of his government’s budget in October as the cost of borrowing for governments across the world reaches a new high.

UK Prime Minister Andy Burnham was confronted by the harsh reality of Britain’s weak public finances on his return to parliament on Tuesday as the global selloff in government bonds left him facing a £12 billion problem.

Yield on 30-year gilts highest since 1998 as rout triggered by global factors underlines tricky backdrop John Healey faces Business live – latest updates The chancellor’s headroom against Labour’s fiscal rules could be almost halved at his first budget if the current global bond sell-off persists into the autumn, eco

Higher borrowing costs have piled fresh pressure on Andy Burnham ahead of his first Budget.

Higher rates on the bonds will therefore mean that it costs UK more in order to borrow money

Prime minister and chancellor prepare for Budget in October amid questions over how they will fund key plans

It came amid a widespread global bond sell-off amid concerns over ratcheting oil prices and wider uncertainty over inflation.

It came amid a widespread global bond sell-off amid concerns over ratcheting oil prices and wider uncertainty over inflation.

UK borrowing costs have hit their highest level since the financial crisis as gilts were swept up in a mass rout across global bond markets.  The UK government is set to pay a higher rate on debt interest as 10-year gilt yields, the benchmark for borrowing costs, were up by as much as 15 basis…

The rate demanded by investors to buy UK debt has been driven up by persistent inflation, high borrowing levels and political instability.

The rate demanded by investors to buy UK debt has been driven up by persistent inflation, high borrowing levels and political instability.