UK chancellor considers stricter spending cuts as borrowing costs rise

Chancellor Rachel Reeves may impose stricter spending cuts to balance the budget, having ruled out increasing borrowing or taxes. This follows a rise in UK bond yields to their highest levels since 2008, raising concerns about government borrowing costs. Culture Secretary Lisa Nandy reassured the public that the situation is manageable, attributing the bond yield surge to global trends. She emphasized the importance of maintaining relationships with major economies like China, despite market turbulence. The March fiscal statement may highlight the need for further spending cuts, as government departments are already under pressure to find efficiency savings. Meanwhile, the pound has dipped against the dollar amid rising borrowing costs.