UK Borrowing Jumps 30% in May, Straining Fiscal Room

UK public sector borrowing hit £23.3 billion in May 2026, up 30% from May 2025. Combined with a fiscal year already running above the Office for Budget Responsibility's baseline, the surge narrows the government's headroom to absorb economic shocks without breaching its own fiscal rules. Larger deficits mean larger gilt issuance into a market already repricing upward.