Rising borrowing costs batter UK government and threaten to derail its left-leaning program

Britain’s new government, which is already facing anger over higher taxes, unpopular spending decisions and political scandals just six months after taking office, is now being battered by rising borrowing costs that threaten to derail its left-leaning program. The yield on the U.K.’s 10-year bonds, a reflection of the price investors demand for financing the country’s debt, has risen by more than 1.1 percentage points since Sept. 16 on concerns about sluggish economic growth and stubbornly high inflation. That has pushed Britain’s borrowing costs to the highest level since the 2008 financial crisis. Prime Minister Keir Starmer may have to rethink promises to boost spending and avoid tax increases on working people that helped his Labour Party's election victory in July.