UK minister reassures public on rising borrowing costs as bond yields hit 2008 levels

UK Culture Secretary Lisa Nandy reassured the public about rising government borrowing costs, stating there is no need for concern despite bond yields reaching their highest levels since 2008. She emphasized that the Labour government will not borrow for day-to-day spending. Chancellor Rachel Reeves may implement further spending cuts to balance the budget, having already ruled out tax increases or additional borrowing. The yields on 10-year and 30-year gilts have risen significantly, reflecting increased borrowing costs for the government. The pound has also seen a slight decline against the dollar. Critics have compared the current situation to the fallout from former Prime Minister Liz Truss' mini-budget in 2022, raising concerns about fiscal sustainability in the UK.