UK Government Borrowing Costs Fluctuate with Early Release of Official Economic Forecasts

Written by Emily J. Thompson, Senior Investment Analyst

Source: CNBC

Updated: Nov 26 2025

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Source: CNBC

U.K. Government Borrowing Costs: The U.K. government's borrowing costs decreased after the Office for Budget Responsibility (OBR) released its economic forecasts prematurely, leading to fluctuations in gilt yields.
OBR's Apology and Forecasts: The OBR apologized for the early release of its forecasts, which included tax-raising measures and a lowered growth forecast, indicating a need for increased public borrowing.
Impact of Tax Changes: The upcoming budget is expected to introduce various tax increases, including on dividends and property, while also removing the two-child limit on welfare, which will significantly raise public borrowing.
Market Reactions and Historical Context: Investors are concerned about the government's high borrowing costs, which are the highest among G7 nations, and recall the negative impact of previous unfunded tax cuts on the economy.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.