As the government attempts to adhere to its self-imposed rule not to borrow money to fund daily spending, economists have cautioned that the growing expenses may result in additional tax rises or spending reductions.
Treasury Minister Darren Jones stated that there was “no need for an emergency intervention” and that markets “continue to function in an orderly way” in response to a pressing issue in the Commons.
However, Mel Stride, the shadow chancellor, stated: “It is understandable that the public, businesses, and markets are now experiencing serious concerns due to the increased debt and slower growth.”
What does it mean for me and why are borrowing costs in the UK going up?
Jones stated: “Gilt prices and rates typically fluctuate in tandem with broader fluctuations in international financial markets.
