"With UK borrowing costs hitting a 27-year high, and the pound suffering its worst day in nearly three months, it's yet another economic disaster from Rachel Reeves - and a clear vote of no confidence in Labour from the markets. This is what happens when you have a government with next to no business experience. Labour promised stability but they've doubled inflation, delivered soaring debt and destroyed business confidence. With more tax rises on the horizon, the economy is now in a precarious position."
"The market move was a sign that investors do not have confidence the Treasury will stick to its strict borrowing rules. 30-year yields at their highest in almost three decades is not a good look for the Labour government and underscores that there is little fiscal or economic credibility left."
UK government borrowing costs rose to a 27-year high while the pound fell sharply against the dollar. Financial markets reacted negatively after a recent reshuffle, prompting Conservative warnings that markets had issued a vote of no confidence. The Shadow Chancellor blamed rising borrowing costs, doubled inflation, soaring debt, weakened business confidence, and looming tax rises. The government signalled a shift to a "second phase" focused on economic growth. An investor strategist said the market move showed a lack of confidence that the Treasury will adhere to strict borrowing rules and that long-term yields undermine fiscal credibility.
Read at London Business News | Londonlovesbusiness.com
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