UK government borrows £4bn at 5.82% for 30 years
Business
On September 8, 2026, the UK government borrowed £4 billion for 30 years, but at a steep 5.82% interest rate, the highest in almost three decades.
This move really highlights how tough it's getting for Chancellor John Healey to keep public finances balanced as inflation and borrowing costs keep climbing.
Global inflation fears lift borrowing costs
The spike matches what's happening globally: investors are worried about inflation, so borrowing is more expensive across major markets.
The Office for Budget Responsibility warns that higher interest rates could eat up at least half of the U.K.'s expected budget wiggle room.
Plus, oil prices are soaring thanks to Middle East tensions, which Bank of England Governor Andrew Bailey says are putting pressure on inflation and interest rates.