Why are UK borrowing costs rising and what does it mean for me?

Why are UK borrowing costs rising and what does it mean for me? UK government borrowing costs have been rising, with some now at their highest level since 1998 as investors around the world worry about inflation. Why is this happening and how does it affect you? A bond is a bit like an IOU that can be traded in the financial markets. Governments generally spend more than they raise in tax so they borrow money to fill the gap, usually by selling bonds to investors.