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UK Gilt Yield Hits 1998 High, MPs Demand Starmer Resignation

5/12/2026

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Summary

Story summary

The 30-year UK gilt yield rose to 5.80%, the highest since 1998.
Over 70 Labour lawmakers urged Prime Minister Keir Starmer to resign as yields hit multi-decade highs.
Starmer said he will not step down because a challenge needs at least 81 Labour MPs.
JPMorgan analysts expect the banking surcharge to rise to 5% from 3% if a left-leaning government takes power.

History

Historical Context

The June 1979 budget, delivered by Chancellor Geoffrey Howe in the first Thatcher government, shifted UK policy toward tight monetary control, raising VAT from 8% to 15%. The tightening drove gilt yields sharply higher, creating a precedent where spikes trigger fiscal restraint. In 2024, Labour-led fiscal debates echo that historic pattern.

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Story summary

The 30-year UK gilt yield rose to 5.80%, the highest since 1998.
Over 70 Labour lawmakers urged Prime Minister Keir Starmer to resign as yields hit multi-decade highs.
Starmer said he will not step down because a challenge needs at least 81 Labour MPs.
JPMorgan analysts expect the banking surcharge to rise to 5% from 3% if a left-leaning government takes power.

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