POUND FALLS FURTHER DUE TO BORROWING COSTS – UK government borrowing costs hit their highest levels since the 2008 financial crisis
The pound continued its downward slide as UK government borrowing costs hit their highest levels since the 2008 financial crisis, when lending nearly froze.
The surge in 10-year borrowing costs has raised alarms among economists, who warn it could lead to further tax hikes or spending cuts as the government works to meet its borrowing targets.
A Treasury spokesperson, addressing concerns, stated, “Meeting the fiscal rules is non-negotiable. The government will maintain an iron grip on public finances.” The statement added that the Chancellor is committed to driving economic growth and supporting working people.
However, Shadow Chancellor Mel Stride criticized the government’s fiscal strategy, arguing that heavy borrowing and spending plans outlined in the Budget are driving up borrowing costs. “We need a more resilient economy, not higher taxes caused by fiscal mismanagement,” Stride posted on X.
The warnings come as the cost of 30-year government borrowing reached a 27-year high earlier this week. Simultaneously, the pound fell 0.9% against the dollar, trading at $1.226.
