UK borrowing in May surges by more than expected

Borrowing is the difference between spending and income from taxes.

Investors are concerned that surging bond yields, influenced by the Iran conflict, may lead to a global spending crunch, affecting government and household budgets.

The International Monetary Fund has urged Britain to continue reducing government borrowing amid growing bond market concerns over a Labour leadership challenge.

UK 10-year government bond yields have reached their highest since 2008, with concerns about a potential leadership change affecting market confidence.

G7 bond yields are hitting multi-decade highs due to the Iran war, with European, Japanese, UK, and US government borrowing costs all rising.

The rise in UK government borrowing costs is raising questions about the country's fiscal stability and the potential impact on governance.