Britain’s long-term borrowing costs have surged to a 27-year high, with the interest rate on 30-year government debt hitting 5.72%, driven by persistent inflation and reduced demand from pension schemes.
Economist Mohamed El-Erian warned of a potential “doom loop” where rising interest rates increase borrowing costs, reduce growth, and strain public finances.
Speaking on Radio 4, he urged Chancellor Rachel Reeves to demonstrate fiscal discipline and a clear growth plan in her November 26 budget to reassure markets.
The pound also dropped over 1% against the dollar, reflecting concerns about tax rises damaging growth.
Mark Dowding of RBC BlueBay noted that further tax increases could exacerbate inflation and leave a fiscal deficit, highlighting the delicate balance Reeves faces.
The economic challenges coincide with political turmoil, including Angela Rayner’s resignation and Labour’s internal struggles, putting pressure on Keir Starmer to stabilize the economy and restore investor confidence.
2025-09-07 18:16:00
Chancellor Rachel Reeves announced the autumn budget for November 26, aiming to address a £30 billion deficit with growth measures.
2025-09-07 14:50:00
The UK's long-term borrowing costs have reached a 27-year high, fueling speculation about the government's economic credibility and the future of Chancellor Rachel Reeves following a significant government reshuffle.
2025-09-05 14:20:00
A major government reshuffle has fueled speculation about the future of Chancellor Rachel Reeves as the UK's long-term borrowing costs reach a 27-year high amidst broader European economic uncertainty.
2025-09-04 10:16:00
Chancellor Rachel Reeves is reportedly weighing a new property tax to replace or reform the existing stamp duty system, a move that could shake up the UK housing market.
2025-08-21 21:35:00
Chancellor Rachel Reeves is reportedly weighing a new property tax on high-value homes to replace or reform the existing stamp duty system.
2025-08-21 21:25:00
Leading UK auditors have warned that the government's plans for tax reform could be 'rushed' and lead to significant snags and unintended consequences.
2025-08-21 20:17:00
Chancellor Rachel Reeves has pledged to make boosting the UK's productivity a key focus of her upcoming Autumn Budget.
2025-08-20 21:04:00
Chancellor Rachel Reeves unveiled the Financial Services Growth and Competitiveness Strategy at the Mansion House speech.
2025-08-20 18:39:32
The Department for Work and Pensions confirms the £150 Warm Home Discount scheme will expand to include Universal Credit claimants from this winter.
2025-10-02 12:31:00
Lender Close Brothers has set aside an additional £33 million to compensate customers for overcharged car loans, marking a fresh blow amid the ongoing investigation into historical mis-selling in the UK car finance market.
2025-10-01 17:36:00
The state pension age is expected to rise again, leaving 1.5 million Britons in 'benefit limbo' who are too young to retire but have lost access to key benefits and tax credits.
2025-10-01 15:11:00
Chinese money launderer Zhimin Qian has been convicted in one of the UK’s largest-ever money laundering cases, bringing an end to a seven-year Met Police investigation into a global scheme to clean illicit cryptoassets by purchasing property.
2025-10-01 14:10:00
A new report has urged the government to accelerate the rise of the state pension age to 68, arguing that the welfare bill is becoming unsustainable and that past governments have 'treated the issue like a hot potato.'
2025-10-01 10:36:00
Asian shares traded in a narrow range as traders prepared for a potential US government shutdown, while Wall Street finished higher, boosted by technology stocks and US interest rate cut expectations.
2025-09-30 19:40:00
Replace bathtubs with groutless showers for easier cleaning, water savings, and timeless design.
2025-09-30 17:58:00
The Jersey Communication Foundation has distributed grants exceeding £23,000 to six local projects, aiming to create a 'level playing field' and tackle social mobility issues in the Teesside community.
2025-09-29 16:55:00
Bullion has hit a series of record highs, putting 2025 on track for gold’s strongest annual performance since 1979, driven by high inflation, interest rate volatility, and escalating geopolitical crises.
2025-09-29 16:45:00
Drivers advised to verify QR codes in car parks to avoid fraudulent payment sites.
2025-09-29 12:38:00
Use lemons, vinegar, and other foods for eco-friendly cleaning, avoiding harsh chemicals.
2025-09-28 19:25:00
US cattle and beef prices have soared to record highs amid tight domestic supply, strong consumer demand, and ranchers’ reluctance to expand herds, with restaurant owners forced to pass on soaring costs to diners.
2025-09-28 19:03:00
Gold is on track for its strongest annual performance since 1979, with bullion hitting a series of record highs driven by high interest rates, inflation, and increasing geopolitical crises.
2025-09-28 18:14:00
Wales’ new Visitor Levy has been signed into law, giving Welsh councils the choice to introduce a tourism tax on overnight stays, with the earliest possible implementation date now set for 2027.
2025-09-28 13:59:00
The Liberal Democrats warn that an estimated 1.3 million people will pay an additional £285 a year in a 'stealth tax' if the chancellor freezes income tax thresholds.
2025-09-23 16:21:00
22% of workers report money worries harming job performance, with 19% taking sick leave due to financial stress, per BSA research.
2025-09-23 13:26:00
BMW sets aside £206.9m for potential car finance mis-selling payouts amid FCA investigation.
2025-09-22 16:47:00
UK housing market sees 2% price drop in Q3 2025, driven by high interest rates and economic uncertainty.
2025-09-22 15:23:00
A three-bedroom house in Nantlle filled with rubbish goes to auction with a £45,000 guide price, requiring full renovation.
2025-09-20 23:40:00
Expert warns of five common central heating errors adding hundreds to UK households' energy bills.
2025-09-20 14:47:00
Cold Weather Payments activated in parts of UK as temperatures drop below zero for seven consecutive days.
2025-09-20 11:36:00
UK house prices rise just 1.2% in 2025, with high interest rates cooling demand, says Halifax.
2025-09-19 20:11:00