The government of the United Kingdom borrowed approximately 149.7 billion British pounds in the 2024/25 financial year. In 2020/21, government borrowing was almost 311 billion pounds, due to increased financial support to public services during the COVID-19 pandemic, combined with reduced revenue due to the lockdowns.

The yield on United Kingdom 10Y Bond Yield rose to 4.51% on December 2, 2025, marking a 0.02 percentage points increase from the previous session. Over the past month, the yield has edged up by 0.07 points and is 0.26 points higher than a year ago, according to over-the-counter interbank yield quotes for this government bond maturity. UK 10 Year Gilt Bond Yield - values, historical data, forecasts and news - updated on December of 2025.

Public sector net debt amounted to 93.5 percent of gross domestic product in the United Kingdom during the 2024/25 financial year. Following the COVID-19 pandemic, UK government debt has reached levels not seen since the early 1960s, due to a significant increase in borrowing in 2020/21. After peaking at 251.7 percent shortly after the end of the Second World War, government debt in the UK gradually fell, before a sharp increase in the late 2000s at the time of the global financial crisis. Debt not expected to start falling until 2029/30 In 2024/25, the UK's government expenditure was approximately 1.28 trillion pounds, around 44 percent of GDP. This spending was financed by 1.14 trillion pounds of revenue raised, and almost 150 billion pounds of borrowing. Although the UK government can continue to borrow money to finance its spending, the amount spent on debt interest has increased significantly in recent years. Current forecasts suggest that while the debt is eventually expected to start declining, this is based on falling government deficits in the next five years. Government facing hard choices Hitting fiscal targets, such as reducing the national debt, will require a careful balancing of the books from the current government, and the possibility for either spending cuts or tax rises. Although Labour ruled out raising the main government tax sources, Income Tax, National Insurance, and VAT, at the 2024 election, they did raise National Insurance for employers (rather than employees) and also cut Winter Fuel allowances for large numbers of pensioners. Less than a year after implementing cuts to Winter Fuel, the government performed a U-Turn on the issue, and also held back on more significant cuts to welfare.

Graph and download economic data for Interest Rates: Long-Term Government Bond Yields: 10-Year: Main (Including Benchmark) for United Kingdom (IRLTLT01GBQ156N) from Q1 1960 to Q3 2025 about long-term, 10-year, United Kingdom, bonds, yield, government, interest rate, interest, and rate.

Government debt in the United Kingdom reached over 2.8 trillion British pounds in 2024/25, compared with 2.69 trillion pounds in the previous financial year. Although debt has been increasing throughout this period, there is a noticeable jump between 2019/20, and 2020/21, when debt increased from 1.82 trillion pounds, to 2.15 trillion. The UK's government debt was the equivalent of 93.5 percent of GDP in 2024/25, and is expected to increase slightly in coming years, and not start falling until the end of this decade. Public finances in a tight spot With government debt approaching 100 percent of GDP, the UK finds itself in a tricky fiscal situation. If the UK can't reduce it's spending, or increase its revenue, the government will have to continue borrowing large amounts, increasing the debt further. Adding to the problem, is the fact that financing this debt has got steadily more expensive recently, with the government currently spending more on debt interest than it does on defence, transport, and public order and safety. Can the UK grow out its debt? After the Second World War, when the national debt reached over 250 percent of GDP, the UK managed to reduce its debt-to-GDP ratio, due to the economy growing faster than its debt over a long period of time. This is certainly the hope of the current Labour government, who are seeking to avoid significant tax and spending adjustments by strengthening the economy. Overdue investments in infrastructure and increased capital spending may eventually achieve this goal, but the government's declining popularity suggests they may not be in power by the time these policies might eventually bear fruit.

In 2024, the average yearly yield of UK 10-year government bonds was **** percent. The UK 10-year gilt has shown a significant downward trend from 1990 to 2024. Starting at nearly ** percent in 1990, yields steadily declined, with slight fluctuations, reaching a low of **** percent in 2020. After 2020, yields began to rise again, reflecting recent increases in interest rates and inflation expectations. This long-term decline indicates decreasing inflation and interest rates in Australia over the past decades, with recent economic conditions prompting a reversal in bond yields.

As of July 18, 2025, the major economy with the highest yield on 10-year government bonds was Turkey, with a yield of ** percent. This is due to the risks investors take when investing in Turkey, notably due to high inflation rates potentially eradicating any profits made when using a foreign currency to investing in securities denominated in Turkish lira. Of the major developed economies, United Kingdom had one the highest yield on 10-year government bonds at this time with **** percent, while Switzerland had the lowest at **** percent. How does inflation influence the yields of government bonds? Inflation reduces purchasing power over time. Due to this, investors seek higher returns to offset the anticipated decrease in purchasing power resulting from rapid price rises. In countries with high inflation, government bond yields often incorporate investor expectations and risk premiums, resulting in comparatively higher rates offered by these bonds. Why are government bond rates significant? Government bond rates are an important indicator of financial markets, serving as a benchmark for borrowing costs, interest rates, and investor sentiment. They affect the cost of government borrowing, influence the price of various financial instruments, and serve as a reflection of expectations regarding inflation and economic growth. For instance, in financial analysis and investing, people often use the 10-year U.S. government bond rates as a proxy for the longer-term risk-free rate.

The United Kingdom recorded a government budget deficit of 17434 GBP Million in October of 2025. This dataset provides - United Kingdom Government Budget Value - actual values, historical data, forecast, chart, statistics, economic calendar and news.

The yield on United Kingdom 30-Year Treasury Gilt Auction Bond Yield held steady at 5.25% on December 2, 2025. Over the past month, the yield has edged up by 0.05 points and is 0.49 points higher than a year ago, according to over-the-counter interbank yield quotes for this government bond maturity. United Kingdom 30-Year Treasury Gilt Auction - values, historical data, forecasts and news - updated on December of 2025.

Public sector debt interest spending in the United Kingdom reached 124.7 billion British pounds in 2024/25, compared with just under 126.6 billion pounds in the previous year.

The 'BoE Interest Rate Decision' is a monetary policy event where the Bank of England (BoE) sets the benchmark interest rate, influencing borrowing costs and economic activity in the UK.

Interest Payments on Government Debt in the United Kingdom decreased to 8364 GBP Million in October from 9451 GBP Million in September of 2025. This dataset includes a chart with historical data for the United Kingdom Interest Payments On Government Debt.

The 'BoE Interest Rate Decision' is a monetary policy event where the Bank of England (BoE) sets the benchmark interest rate, influencing borrowing costs and economic activity in the UK.-2025-03-20

From January 2020 through January 2025, the value of money market funds under management in the United Kingdom (UK) remained relatively stable aside from one notable spike in value in October 2022, by January 2023, however, the spike had subsided, and fund levels had fallen below ** million British pounds.

How are money market yields linked to inflation? The money market yields are influenced by inflation expectations. When inflation expectations rise, investors typically demand higher nominal yields to offset the anticipated decline in purchasing power. Market sentiment regarding inflation is reflected in these yields, which act as indicators for both investors and policymakers. The inflation rate for the Consumer Price Index (CPI) in the United Kingdom went from under *** percent in March 2021 to a high of **** percent in October 2022. Although inflation declined to *** percent in October 2023, it remained well above the levels seen before 2021. Consequently, a significant increase in money market yields was observed. Beginning in 2022, the monthly average yields from the British government bonds continued to rise until they reached their peak in mid-2023, indicating higher inflation expectations.

What is LIBOR? The London Interbank Offered Rate, or LIBOR, is a benchmark interest rate that reflects the average interest rate at which major global banks lend to each other in the interbank market. It is used to establish interest rates for financial instruments such as adjustable-rate mortgages, business loans, and derivatives. The six-month overnight London Interbank Offered Rate based on the British pound increased month by month from 2022 onwards, reaching its peak in March 2023 at **** percent. This increase in borrowing costs has a ripple effect throughout the financial system, which means higher interest rates for businesses and consumers overall.

The Floor and Wall Covering industry’s revenue is forecast to climb at a compound annual rate of 1% over the five years through 2024-25 to reach £4.1 billion. Floor and wall covering contractors compete for work in the residential, commercial, public and industrial markets and revenue tends to run procyclical to the wider economy. Challenging economic conditions have reduced contractors' income prospects in recent years, constraining revenue growth. The industry has endured several challenges due to both domestic and global disruptions, including Brexit, COVID-19 and the Russia-Ukraine conflict, which have caused revenue fluctuations. These events have significantly disrupted supply chains, inflating raw material prices and operational costs for contractors, cutting into their profitability. At the same time, some of the escalated costs have been passed onto customers, resulting in limited income opportunities for contractors due to consumers tightening their budgets thanks to the cost-of-living crisis. Persistent inflationary pressures have diminished the post-pandemic recovery in construction activity, weighing on new contract opportunities and constraining growth. The Bank of England’s (BoE) interest rate hike to 5.25% in August 2023 to suppress inflation hampered investment in both the residential and commercial construction market, hitting demand for floor and wall coverings in new buildings. Alongside this, the surge in borrowing costs has prompted homeowners to scale back their spending or turn to DIY home renovation projects. Inflation is easing in 2024-25, which has prompted the BoE to begin cutting the interest rate – it fell to 4.5% in February 2025. However, economic uncertainty persists following the 2024 Autumn Budget’s business tax increases, which has undermined consumer and business confidence, hindering investments and limiting demand for floor and wall covering services. Nonetheless, supportive government policies, like the Affordable Homes Programme, primarily aimed at the residential market, are driving demand, supporting an expected revenue hike of 4.3% in 2024-25 Over the five years through 2029-30, revenue is anticipated to grow at a compound annual rate of 3.4% to £4.8 billion. Strong residential construction activity will continue to drive growth, benefitting from supportive government policies to bolster the UK's housing stock. Non-residential construction activity will benefit from recovering economic conditions, which will support investments in commercial property spaces, like offices, boosting demand. Recovering consumer confidence and incomes should drive a resurgence in demand from homeowners. However, the industry will continue to face persistent labour shortages, which, coupled with anticipated wage hikes, will contribute to escalating operating costs.

Debt collection agencies have operated in a high-demand but compliance-heavy environment in recent years. Surging energy and credit arrears, persistent business insolvencies and tighter conduct rules have defined the market. The Insolvency Service reported that 23,872 companies became insolvent in 2024, while Ofgem stated that domestic energy arrears reached £3.9 billion in the same year, both fuelling the flow of unpaid accounts to collection agencies. These trends have supported workloads across the business, consumer and utility markets, but recovery rates have slowed thanks to mounting regulatory pressures – collectors must now prioritise fair treatment and affordability checks under the Financial Conduct Authority’s (FCA) Consumer Duty. Still, over the five years through 2025-26, revenue is projected to climb at a compound annual rate of 2.4% to reach £2 billion, including a forecast rise 0.9%of in 2025-26. Profit has also inched up thanks to falling energy prices and automation reducing running costs, though increases in wages, business rates and compliance spending have limited margin growth. Digitalisation has become essential to maintaining profitability and meeting regulatory standards. Agencies are integrating open banking and Pay by Bank tools that enable real-time income verification and instant repayments. Open Banking Ltd reported 130 million open banking payments in 2023, almost double the prior year, highlighting how this technology is transforming collection processes. These innovations directly affect the industry’s operating model by cutting card fees, reducing failed payments and evidencing fair outcomes for regulators. Large debt collection companies such as Lowell, Cabot Credit Management and Arrow Global have restructured debt and consolidated systems to fund automation projects and remain competitive. Their actions reflect a broader industry shift towards scale and efficiency, where compliance capability and digital capacity determine an agencies’ competitiveness. Looking ahead, easing inflation and steadier employment are expected to improve repayment capacity in the coming years, supporting gradual revenue gains. Over the five years through 2030-31, revenue is slated to mount at a compound annual rate of 2.5% to reach £2.3 billion. However, rising regulatory scrutiny and possible government oversight of enforcement practices may necessitate heavier investment in governance and data protection. These measures will raise costs but enhance consumer trust and contract stability, favouring agencies that can combine compliance assurance with automation. Companies that leverage technology to balance empathy with efficiency will be best placed to grow in a maturing, tightly regulated market.

The yield on UK 20 Year Bond Yield rose to 5.15% on December 1, 2025, marking a 0.06 percentage points increase from the previous session. Over the past month, the yield has edged up by 0.05 points and is 0.47 points higher than a year ago, according to over-the-counter interbank yield quotes for this government bond maturity. This dataset includes a chart with historical data for UK 20Y.