Borrowing Costs and Fiscal Headroom: A Perfect Storm for the UK's Economy The latest economic outlook from KPMG paints a dire picture for John Healey, the newly appointed Chancellor of the Exchequer.
With borrowing costs soaring due to the ongoing Iran war and weaker growth expectations, the government's fiscal headroom has taken a staggering hit – almost £12 billion less than projected just a few months ago.
The UK's gilt market is under intense pressure, with long term borrowing costs increasing significantly due to inflation fears linked to the conflict in Iran.