Why It Now Costs Britain More to Borrow Money

Britain now pays more to borrow than it has in decades. On 14 September 2026, interest on UK government 10-year loans passed 5.4%, the highest since July 2007, and 30-year loans hit 5.93%, the highest since March 1998. Like higher interest on a credit card, this raises government borrowing costs before Chancellor John Healey's October budget.