UK government borrowing costs hit 28-year high on leadership uncertainty

UK government borrowing was lower than expected last month, but was still more than four times higher than a year ago and remained the fifth highest July borrowing since records began, official figures have shown (Alamy/PA) -

UK long-term borrowing costs have surged to a fresh 28-year high and the pound weakened as Prime Minister Sir Keir Starmer’s leadership comes under increasing pressure.

The yield on 30-year UK government bonds – also known as gilts – jumped as much as 13 basis points to 5.807% in Tuesday morning trading, reaching the highest level since 1998 as Sir Keir faced increasing calls from within his own party to quit.