SaralnamaToday: UK's long-term borrowing costs reached their highest level in 27 years. The yield on 30-year government debt hit 5.680% on 24 Oct 2023. This increase puts pressure on Chancellor Rachel Reeves before the autumn budget. From now: Rising borrowing costs may force Reeves to consider tax hikes or spending cuts to meet fiscal rules. Until budget: The Treasury faces limited fiscal headroom due to higher interest rates. Next: Reeves must keep bond markets confident to avoid a potential 'doom loop' of higher borrowing costs and lower tax revenue. (Updated 2 Sep 2025, 17:02 IST; source: link)
Key Points
- Today: UK's long-term borrowing costs reached their highest level in 27 years
- The yield on 30-year government debt hit 5.680% on 24 Oct 2023
- This increase puts pressure on Chancellor Rachel Reeves before the autumn budget