Source: BBC News [UK State Media]
“The pound has fallen to its lowest level in over a year, while UK borrowing costs hit their highest for 16 years. Economists have warned that the rising costs could lead to further tax increases or spending cuts as the government tries to meet its self-imposed rule not to borrow to fund day-to-day spending. In response to an urgent question in the Commons, Treasury minister Darren Jones said there was ‘no need for an emergency intervention’ and markets ‘continue to function in an orderly way’. But shadow chancellor Mel Stride said: ‘Higher debt and lower growth are understandably now causing real concerns among the public, among businesses and in the markets.’ Jones said: ‘It is normal for the price and yields of gilts to vary when there are wider movements in global financial markets, including in response to economic data,’ adding that the government’s decision to only borrow for investment was ‘non-negotiable’.” (01/09/25)