Tag: costs
Reeves vows action on growth amid rising debt costs
Chancellor Rachel Reeves has pledged to go “further and faster” to improve economic growth after market turbulence saw the cost of servicing UK debt rise. The last few days have seen pressures on the public finances increase, after government borrowing costs hit their highest level for several years. Conservative shadow chancellor Mel Stride called it…
Fears over UK borrowing costs as US jobs figures prompt stock market volatility
Pound falls against the dollar and bond yields rise amid concerns over high UK inflation and interest rates Concerns over the UK government’s borrowing costs were revived on Friday after stronger-than expected US jobs figures triggered volatile conditions in global financial markets. In an accelerating global bond market sell-off, investors warned that the UK was…
Reeves mulls deeper cuts to public services as borrowing costs soar
Chancellor could slash departmental spending in spring after ruling out tax increase, officials reveal Rachel Reeves is considering imposing steeper cuts to public services to repair the government’s finances after a bruising week in which investors drove up the cost of UK borrowing and pushed the pound to a 14-month low. Government officials have told…
Guantánamo Bay Explained: The Costs, the Captives and Why It’s Still Open
Trump Investigations Just 15 men remain at the prison, down from hundreds when it opened 23 years ago. But the costly operation could go on for years. By Carol Rosenberg Carol Rosenberg has been covering the prison at Guantánamo Bay, Cuba, since the first detainees were brought there on Jan. 11, 2002. She first reported…
What rising borrowing costs could mean for Labour’s economic plan
Nothing has been more important to the Labour Party under Sir Keir Starmer than economic credibility. Chancellor Rachel Reeves has set out clear fiscal rules, such as getting debt falling as a share of national income by the end of this parliament, and she has made sticking to these rules a crucial test of the…
Why are UK borrowing costs rising and what does it mean for me?
Government borrowing costs have been steadily rising in recent months, and have now hit their highest levels for several years. Why is this happening and how does it affect you? A bond is a bit like an IOU that can be traded in the financial markets. Governments generally spend more than they raise in tax…
Pound falls as borrowing costs rise to highest since 2008
The pound has fallen to its lowest level for nine months after UK government borrowing costs continued to rise. The drop came as UK 10-year borrowing costs surged to their highest level since the 2008 financial crisis when bank borrowing almost ground to a halt. Economists have warned the rising costs could lead to further…
Rising costs force ‘difficult choices’ on schools
Head teachers say they face “difficult choices” over what their schools can afford, as a new report says they could be forced into further cuts next year. The Institute for Fiscal Studies (IFS) says costs will outpace funding for schools in 2025-26. Schools say that means they will struggle to fund the government’s proposed pay…
Faisal Islam: Soaring UK borrowing costs are a problem for Rachel Reeves
Economists have warned that the government is “on course” to miss its own Budget borrowing targets after interest rates for UK long-term borrowing rose to their highest levels this century. The official forecaster, the Office for Budget Responsibility will start the process of updating its forecast next month, to be presented to parliament in late…
UK long-term borrowing costs at highest since 1998 amid fears over weak growth
Yield rises above peak reached when Liz Truss’s mini-budget in 2022 caused turmoil in markets The UK government’s long-term borrowing costs have reached the highest level since 1998 amid investor concerns over Britain’s sluggish growth prospects and stubbornly high inflation. The yield – in effect the interest rate – on UK 30-year government debt rose…
Give working parents help with childcare and commuting costs, UK thinktank says
Child poverty plan must address the 70% of families with at least one parent in work, Resolution Foundation says Labour must offer extra support to working parents, including with childcare and commuting, if it is to fulfil its promise of cutting child poverty, the Resolution Foundation thinktank has argued. The government’s manifesto promised an “ambitious…