Part 7/11:
Government borrowing continues to escalate, with June alone seeing a borrowing of £20.7 billion—tripling the amount borrowed in the same month last year. Elevated bond yields at 4.6-4.8% are making debt servicing more expensive and constraining fiscal flexibility. Meanwhile, consumer spending is cooling, evidenced by fewer flights, reduced port activity, and declining retail sales, indicating tightening household budgets and waning economic confidence.