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Burnham faces PMQs as UK borrowing costs jump to late 1990s highs
The increase in long term gilt yields cut the Treasury’s fiscal safety net by £12bn, according to the report.
Andy Burnham is set to face PMQs for the first time as UK borrowing costs rise, with the Resolution Foundation warning it is not realistic to increase defence spending without tax rises. The Guardian Economics framing highlights that political questions are likely to focus on spending and pensions, including calls for Burnham to scrap the pensions triple lock. The report says long term borrowing costs jumped to their highest level since early 1998, after investors sold UK government bonds. It attributes much of the move to international factors, noting that other countries are also seeing government borrowing costs soar. According to the story, the rise in yields has had a direct impact on UK government finances, with the Treasury reportedly losing £12bn from its fiscal safety net. The outlet also notes that the bond market may have been watching Burnham’s Commons messaging on spending ahead of PMQs.
Time stamps in the live coverage include references to a UK bond market reaction, with commentators saying Burnham’s implication of more spending was not what the market wanted to hear. The coverage also references other political and health policy disputes as part of the broader PMQs and parliamentary backdrop.