Original title: UK borrowing costs hit 27-year high adding to pressure on Reeves
UK borrowing costs hit 27-year high adding to pressure on Reeves 6 hours ago Share Save Tom Espiner & Nick Edser Business reporters, BBC News Share Save Reuters UK government long-term borrowing costs have reached their highest level since 1998, adding to the pressure on the chancellor ahead of the Budget. The interest rate on 30-year government bonds, known as the yield, jumped to 5.72%, making it more expensive for the government to borrow money. There are rising expectations that Chancellor Rachel Reeves will increase taxes in the Budget later this year in order to meet her borrowing and spending rules, as worries grow about the state of the government’s finances. On the currency markets, the pound also fell more than 1% against the dollar on Tuesday. Sterling fell against the dollar to $1.3388, which is the lowest level against the US currency since 7 August. The UK was not alone in seeing borrowing costs rise, with yields on 30-year German, French and Dutch bonds climbing to their