Story perspectives

Healey’s £4bn bond sale lifts UK borrowing costs

9/9/2026

Summary

Story summary

John Healey oversaw a £4 bn 30-year bond sale at 5.82% interest, the highest since 1998.
Healey said the 28 October budget will target stronger growth while respecting fiscal rules.
Healey and Andy Burnham aim to balance spending with tax receipts by 2029-30.
UK 10-year borrowing costs hit an 18-year high as oil neared $100 a barrel.
Healey pledged no tax hikes but may cut welfare to curb youth unemployment.

History

Historical Context

During the 2008 global financial crisis, the United Kingdom issued £30 billion of 30-year gilts at a 5.5% yield, marking a dramatic borrowing surge. Chancellor Gordon Brown and the Bank of England coordinated the sale, while the European Central Bank cut rates by 0.75% to stabilize markets. Similarly, John Healey’s £4 billion 30-year bond issuance at 5.82% mirrors that crisis-era reliance on long-dated debt to fund growth targets. Both episodes illustrate how fiscal leaders like Andy Burnham and Gordon Brown resort to high-cost borrowing when fiscal rules constrain immediate tax hikes.

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Story summary

John Healey oversaw a £4 bn 30-year bond sale at 5.82% interest, the highest since 1998.
Healey said the 28 October budget will target stronger growth while respecting fiscal rules.
Healey and Andy Burnham aim to balance spending with tax receipts by 2029-30.
UK 10-year borrowing costs hit an 18-year high as oil neared $100 a barrel.
Healey pledged no tax hikes but may cut welfare to curb youth unemployment.

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