UK government borrowing overshoots expectations on day Burnham elected Economics UK government borrowing jumped higher than expected than expected in May, official data has shown, with Andy Burnham’s win in Makerfield now setting up a potential shift in public finance forecasts. The Office for National Statistics said the government’s net borrowing was £23.2bn in May, above economists’ £19bn prediction. Further government borrowing came as debt [...]
‘Nothing is straightforward’: Market analysts warn of US-Iran deal complications Markets Top market analysts warned on Monday that “nothing is straight forward” as euphoria spread across European equities after a confirmed peace deal between the US and Iran. Stock markets opened in the green as investors returned to a risk-on mentality after Pakistan announced an agreement between the two nations and Donald Trump declared the oil [...]
Reeves warned Iran war oil shock will lead to government borrowing spike Economics Chancellor Rachel Reeves has been warned that government borrowing is set to spike as a result of the Iran war as the Office for Budget Responsibility admitted it had underestimated the effects of the last energy price shock. In a review of its forecasting models, the OBR suggested it had learned lessons from Russia’s full-scale [...]
As it happened: FTSE 100 plunges as Iran pulls out of US peace talks; Mandelson files released June 1, 2026 Good morning and welcome back to the City AM liveblog. Oil has nudged a touch higher to $93 per barrel this morning as uncertainty continues to cloud any prospect of a peace deal in the Middle East. The latest peace proposal between the US and Iran was said last week to be awaiting on the [...]
Rachel Reeves oversees borrowing spike as benefits spending offsets tax haul May 22, 2026 Rachel Reeves oversaw a surge in borrowing in the first month of the financial year as April’s figures hit the highest since 2020 on higher benefit spend. Government borrowing – which marks the difference between total public sector spending and income – topped £24.3bn in April 2026, according to the Office for National Statistics (ONS). [...]
Andy Burnham confirms Westminster run as Wes Streeting resigns from government May 14, 2026 Andy Burnham has declared his intention to stand in a by-election after a sitting Labour MP quit to make way for him. The current Mayor of Manchester will seek permission from Labour’s ruling body to stand in the Makerfield constituency after Josh Simons announced he would vacate the seat. In a statement, Burnham said: “Millions [...]
Pension fund snaps up cut-price government bonds amid Starmer sell-off May 13, 2026 One of the UK’s largest pension funds has jumped on the turmoil that speculation over Keir Starmer’s future has unleashed on the gilt market, scooping up government bonds at multi-decade low valuations. Standard Life has added to its holding of UK government debt, City AM understands, seizing on a sharp dip in the of the [...]
Exclusive: OBR calculations suggest Reeves set for borrowing spree May 6, 2026 The Office for Budget Responsibility’s own calculations on the impact of a war in the Middle East suggest that Rachel Reeves is set to oversee a surge in borrowing, City AM has found. Sir Keir Starmer and Reeves have said that the government’s focus on “stability” has added protections to public finances and helped the [...]
The tax effect: Reeves borrowed less than OBR forecast April 23, 2026 Chancellor Rachel Reeves oversaw lower government borrowing than the Office for Budget Responsibility forecast in the financial year 2024 to 2025, it has been revealed, pointing to the effect sweeping tax hikes have had in narrowing the deficit. The Office for National Statistics has shown that government borrowing over the last financial year was £132bn [...]
FTSE 100 Live: Stocks slump as oil rises; Reeves tax hikes trigger borrowing boost April 23, 2026 Good morning and welcome back to the City AM liveblog. An extended ceasefire may have been announced in the Middle East, but its left markets with major appetite for further peace before investor sentiment recovers. Brent crude – the international benchmark for oil prices – was trading back over the $100 mark on Thursday morning. [...]