Taxpayer left with hefty bill from high UK borrowing costs – report

High government borrowing costs since Labour won the election have cost the taxpayer up to £7 billion a year, a report said (Jeff Moore/PA) - (PA Archive)

High government borrowing costs since Labour won the election have cost the taxpayer up to £7 billion amid concerns over the state of the UK’s finances, but this “premium” is showing signs of coming to an end, according to a report.

The Institute for Public Policy Research (IPPR) found the UK had seen “uniquely high” borrowing costs when compared to other advanced countries, with yields on government bonds – also known as gilts – having risen steadily since Labour came into power in the summer of 2024.