Britain splurges on borrowing, not serious

TL;DR

UK Borrowing Surge: Robert Colvile argues Britain fails as a serious country due to unsustainable debt amid an Iran crisis shock.
£14.3bn February Borrow: UK borrowed this record non-pandemic amount, with £13bn just servicing interest and 25% of debt index-linked.[[1]](https://www.thetimes.com/comment/columnists/article/we-dont-act-like-a-serious-country-look-at-our-borrowing-splurge-0mc5cqcpw)
Fiscal Vulnerability: Markets view UK as outlier like Brazil, lacking resilience from no surpluses or welfare/military reforms.

The story at a glance

Robert Colvile criticises Chancellor Rachel Reeves and successive UK governments for weak public finances exposed by recent GDP slowdown and Iran crisis disruptions. Markets charge Britain higher borrowing costs and show greater fiscal stress than peers, with IMF forecasting worst G7 per capita growth. This column follows last week's GDP data and energy price spikes, amid claims of global blame on Trump and Iran.[[1]](https://www.thetimes.com/comment/columnists/article/we-dont-act-like-a-serious-country-look-at-our-borrowing-splurge-0mc5cqcpw)

Key points

Economy showed early 2026 growth signs before Iran crisis hit harder in UK than elsewhere, per IMF and OECD downgrades.
UK borrowing costs exceed peers'; bond markets overreact, per Mohamed El-Erian, turning UK debt into "temperamental asset class".[[1]](https://www.thetimes.com/comment/columnists/article/we-dont-act-like-a-serious-country-look-at-our-borrowing-splurge-0mc5cqcpw)
JP Morgan fiscal stress index places UK closer to Brazil than US, reflecting market jitters on debt sustainability.[[1]](https://www.thetimes.com/comment/columnists/article/we-dont-act-like-a-serious-country-look-at-our-borrowing-splurge-0mc5cqcpw)
February borrowing hit £14.3 billion (highest non-pandemic for month), £13 billion on interest; 25% debt index-linked vs usual 3-8%.[[1]](https://www.thetimes.com/comment/columnists/article/we-dont-act-like-a-serious-country-look-at-our-borrowing-splurge-0mc5cqcpw)
UK imports 44% energy, including Norwegian gas, after shifting from net exporter; no bailout possible beyond £600m yearly manufacturing aid.
Long-term failures: no surpluses post-crises, welfare expansion via triple lock, military cuts, poor building and climate accounting.

Details and context

Colvile contrasts Reeves's claim of entering crisis stronger with market disbelief, noting opposition-era reluctance to blame globals. UK open economy amplifies shocks; energy import reliance worsened costs when Iran crisis erupted, spiking inflation expectations.[[1]](https://www.thetimes.com/comment/columnists/article/we-dont-act-like-a-serious-country-look-at-our-borrowing-splurge-0mc5cqcpw)

Both Labour and prior governments share blame for thin-margin finances, splurging in crises without restoring balance. El-Erian notes decade of "borrowing too much while growing too little"; Halligan highlights debt-servicing spiral.[[1]](https://www.thetimes.com/comment/columnists/article/we-dont-act-like-a-serious-country-look-at-our-borrowing-splurge-0mc5cqcpw)

Local elections showed unserious policies like Green salary caps, amplifying despair as traders already flee.

Key quotes

Mohamed El-Erian: “the UK sovereign debt market has gone from a bedrock of the economy to a temperamental asset class that overreacts at the slightest provocation, both on a standalone basis and relative to other government bond markets”.[[1]](https://www.thetimes.com/comment/columnists/article/we-dont-act-like-a-serious-country-look-at-our-borrowing-splurge-0mc5cqcpw)
Rachel Reeves: “we entered this conflict in a stronger position because of the choices this government took to build economic stability”.[[1]](https://www.thetimes.com/comment/columnists/article/we-dont-act-like-a-serious-country-look-at-our-borrowing-splurge-0mc5cqcpw)

Why it matters

UK's fragile finances limit shock responses, eroding investor confidence and growth prospects versus G7 peers. Readers face higher taxes, inflation, or cuts; businesses lack energy bailouts amid £600m cap. Watch Iran-Trump diplomacy and spring budget for fiscal fixes, though politicians avoid tough reforms.