UK government borrowing costs surge to highest since 2008 as PM Starmer pressured to quit

British Prime Minister Keir Starmer speaks at the start of a Cabinet meeting to mark the fourth anniversary of Russia's full-scale invasion of Ukraine, at Downing Street in London, Feb. 24, 2026. Wpa Pool | News | Yields on U.K. government bonds surged to multi-decade highs on Tuesday morning, as pressure mounted on Prime Minister Keir Starmer to resign from his post. By 10:20 a.m. in London, the yield on the benchmark 10-year gilt had jumped 12 basis points to trade at around 5.121%. Bond yields and prices move in opposite directions. Meanwhile, yields at the long end of the curve reached their highest since 1998, with the 20-year gilt yield adding 13 basis points while 30-year yields jumped 12 basis points higher. Stock Chart Icon Stock chart icon U.K. 20- and 30-year gilts Starmer's leadership is on a knife edge after more than 70 Labour lawmakers called for his resignation. The calls for Starmer to resign came after the Labour Party suffered major losses in local council elections last week. While the election result will not change the composition of Britain's parliament or its government, some lawmakers have argued the outcome was a protest from the electorate against Starmer's policy mix. The prime minister held a routine meeting with his cabinet on Tuesday morning. According to the U.K.'s Guardian newspaper, Starmer told cabinet members that he will not step down, reiterating the position he set out in the aftermath of Thursday's elections. …