Pound hits nine-month low as UK borrowing costs rise sharply

The British pound has dropped to its lowest level in nine months, now at $1.1233 against the US dollar. This decline coincides with rising government borrowing costs, raising concerns about potential tax increases. Government borrowing costs have reached their highest levels since the 2008 financial crisis. Yields on government bonds have surged from 4.04% to 4.79%, prompting warnings from economists about possible cuts to public spending. The government has faced criticism for its fiscal policies, with calls for a more resilient economic approach. Public sector budgets may be published sooner due to the worsening financial situation.