UK borrowing costs reach highest level since 2008, pressuring Chancellor Rachel Reeves

UK borrowing costs have reached their highest level since the 2008 financial crisis, increasing pressure on Chancellor Rachel Reeves to manage the budget. She is considering stricter spending cuts while avoiding tax hikes or increased borrowing. The rise in government bond yields, with 10-year gilts hitting 4.89%, reflects growing concerns about the UK's fiscal sustainability. This situation may limit Reeves' financial options, as she faces demands for efficiency savings from government departments. Critics have accused Reeves of neglecting domestic issues during her trip to China. The government maintains that the bond market is stable and that global factors are influencing current market conditions.