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LONDON DAILY ARCHIVE

UK Budget Deficit Surge Pressures Pound and Gilts

Markets react to rising government borrowing costs.

19 September 2025 · 23:44 UTC

The British pound and government bonds faced renewed pressure after data revealed a sharp increase in the country’s budget deficit.

Analysts warn the surge in borrowing could undermine investor confidence, add fiscal stress, and complicate the government’s efforts to stabilize the economy.