UK Borrowing Surges 30% in May, Squeezing Fiscal Cushion

UK Borrowing Surges 30% in May, Squeezing Fiscal Cushion

UK public sector borrowing hit £23.3 billion in May, up 30% year-on-year. The jump eats into the government's buffer to weather economic shocks without breaching its own fiscal rules. Larger deficits mean the Treasury must sell more gilts (government bonds) into a market already pricing in higher borrowing costs.

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