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Business May 8, 2026

Bond markets sound the alarm as Labour wobbles and gilt yields climb

Bond markets sound the alarm as Labour wobbles and gilt yields climb
Sir Keir Starmer has unveiled a £1 billion investment package aimed at scaling up the UK’s computing power twentyfold, in a major push to solidify Britain’s status as a global technology and artificial intelligence leader.

Britain is hoovering up the wrong sort of records. In the wake of the Iran war, the economy is staring down the heaviest growth downgrades in the G7, the most stubborn inflation, the greatest exposure to volatile gas prices and some of the thinnest storage capacity in Europe. It is a sobering tally for any prime minister, never mind one whose backbenches are openly muttering about regicide.

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