Bulletin: U.K.?s New Prime Minister Will Face Challenging Spending-Debt Balancing Act To Contain Fiscal Pressure

This report does not constitute a rating action. LONDON (S&P Global Ratings) June 22, 2026--The U.K.'s next prime minister faces the task of balancing significant spending demands against the government?s heavy debt burden and high cost of debt, or the fiscal trajectory could be under pressure. Prime Minster Keir Starmer resigned today, paving the way for the seventh prime minister in 10 years to take office. We project general government debt (net of liquid assets) will total 100.3% of GDP at year-end 2026, the highest level since the 1960s, and much higher than a decade ago. Under Chancellor Rachel Reeve?s planned consolidation efforts, net debt is forecast to fall very slightly to 99.5% by 2029. However, the trajectory of debt

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