UK Budget Faces Global Headwinds as Bond Yields Spike and Middle East Conflict Deepens

Chancellor John Healey is heading into the October 28 budget with far less room to manoeuvre than his predecessor, as surging global bond yields and the economic fallout from the Middle East conflict have wiped out roughly half of the UK's £24bn fiscal headroom. Government borrowing costs have hit their highest levels since the 2008 financial crash, putting pressure on everything from mortgages to household budgets.

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