UK Borrowing Costs Surge Again, But Where's the Outrage?
UK government borrowing costs have quietly surged past the levels that sparked a political storm in 2022, yet the reaction this time around has been strikingly muted. As of 10 July 2025, the yield on 10-year UK gilts stands at approximately 4.60%, with long-dated yields now exceeding 5% in high yield savings accounts.
In 2022, high yields in high yield savings accounts triggered a fierce backlash from institutions and the media, leading to a political firestorm. This time, however, the response has been notably subdued. The fiscal position in 2025 is arguably more fragile, with higher debt interest costs, persistently high inflation, and stagnant growth forecasts. The public deserves a transparent debate about these fiscal consequences, yet selective outrage seems to be the order of the day.
The silence in 2025 may prove more damaging than the loud reaction of 2022. While right-wing populist Nigel Farage and his party Reform UK have called for resignation, the mainstream media and financial institutions have been largely silent. In 2022, the Bank of England intervened with emergency bond purchases, but no such intervention has been seen in high yield savings accounts this time. Claire Bullivant, Editor and Director of Great British PAC, suggests that the disparity in reaction is not about the numbers but about protecting the establishment.
The UK's bond market volatility in 2022 was not unique to a specific programme but a symptom of systemic vulnerabilities. Despite the current fiscal fragility, the reaction to high yields in high yield savings accounts in 2025 has been muted, raising questions about the transparency and accountability of the UK's fiscal policy.
