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.
Chancellor Rachel Reeves announced the autumn budget for November 26, aiming to address a £30 billion deficit with growth measures.
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.
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.
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.
Chancellor Rachel Reeves is reportedly weighing a new property tax on high-value homes to replace or reform the existing stamp duty system.
Leading UK auditors have warned that the government's plans for tax reform could be 'rushed' and lead to significant snags and unintended consequences.
Chancellor Rachel Reeves has pledged to make boosting the UK's productivity a key focus of her upcoming Autumn Budget.
Chancellor Rachel Reeves unveiled the Financial Services Growth and Competitiveness Strategy at the Mansion House speech.
Londoners are purchasing the lowest proportion of houses outside the capital in over a decade due to stalling local prices and the shift back to office working.
FTSE 100 property developer Berkeley Group has warned of a housing slowdown in London, forecasting further decline unless the government addresses regulatory and tax hurdles.
Amazon offers 45% discount on L'Oreal Paris Laser Renew Anti-Ageing Triple Action Eye Cream.
Poundland plans to close up to 68 stores in 2025 following financial difficulties and restructuring.
Financial expert Martin Lewis has issued a strong warning against criminals who use his name and deepfake technology in 'disgraceful' online adverts to scam vulnerable people, after a woman's husband lost thousands of pounds.
The Powerball jackpot has soared to an estimated $1.3 billion, the fifth-largest in the lottery's history, after no winning ticket was sold in the latest drawing, marking the 41st consecutive drawing without a winner.
Experts caution that Premium Bonds winnings may lead to unexpected tax bills depending on how they’re used.
McVitie’s introduces a new caramel-flavoured Penguin biscuit available in major UK supermarkets just in time for autumn.
Despite a wider trend of decreasing car insurance premiums in the UK, a new report indicates that prices for drivers under the age of 25 have seen a recent increase.
The Powerball jackpot has skyrocketed to an estimated $1.3 billion after no one won the top prize in the latest drawing, marking the 41st consecutive drawing without a winner and setting up the fifth-largest jackpot in the lottery's history.
Greggs has introduced a £5 meal deal nationally along with new autumn-inspired menu items including Chicken Fajita Bake and Pumpkin Spice specials.
Financial expert Martin Lewis has issued a powerful warning against online criminals who use his name and deepfake technology in 'disgraceful' adverts to scam vulnerable people, after a woman's husband lost thousands of pounds.
New data reveals councils increasingly use one-off cash incentives to persuade private landlords to accept homeless households, costing taxpayers millions.
Councils are spending millions placing homeless families in hotels due to housing shortages, raising questions about long-term policy failures.
Clase Azul is a premium Reposado Tequila that is as famous for its elegant, hand-painted ceramic decanters as it is for its contents.
Formula 1's elite showcase their extravagant maritime lifestyles with multi-million pound yacht collections, from Toto Wolff's €22m vessel to Charles Leclerc's twin boats.
Following Congress’s vote to strip federal funding, public TV and radio stations race to fill budget holes with local donations, reduced network dues, and a national rescue push.
Labour accused of planning to replace traditional meat with insect proteins in British diets to cut carbon emissions.
Virgin Voyages introduces its fourth Lady ship, the Brilliant Lady, designed as an adult-only party cruise with innovative entertainment and dining.
Lords and Ladies of the manor are facing financial difficulties, leading them to sell off their historic estates due to declining revenues and the high cost of maintenance.
A price increase for the weight-loss drug Mounjaro has sparked affordability concerns among its 1.5 million users in the UK, despite a discount being offered.
Bath is crowned the UK's top city for food lovers, boasting a rich culinary scene alongside its historic streets and natural thermal springs.
.png?auto=webp&format=jpg&quality=80)
