Highest UK Debt Costs Since 1998 Risk More Labour Tax Hikes (3)

The UK’s long-term borrowing costs surged to the highest level in more than a quarter of a century, raising the prospect of Chancellor of the Exchequer Rachel Reeves needing to raise taxes again in order to meet her fiscal rules.

The yield on 30-year gilts climbed as much as six basis points to 5.24% on Tuesday after the first of a string of bond sales due over the coming weeks. The yield was last higher in 1998 when Tony Blair was prime minister and the Bank of England was slashing interest rates from a six-year peak to contain the global ...