1 hour ago Borrowing costs rise as bond markets brace for Budget turmoil

The cost of government borrowing rose amid fears the Chancellor will not take the tough decisions required to put Britain's creaking finances on a stable footing.

Economics

6 h. ago Rachel Reeves has many problems. She’s realising that her Brexit bind may be the biggest of all | Rafael Behr

Brutal economic realities are prompting a shift in Labour’s tone on Europe. But will it dare tell the whole truth about Britain’s predicament? Rachel Reeves has approached this week’s budget like a reluctant swimmer inching into freezing water, trying to ease the unpleasantness by incremental exposure. The chancellor started paddling delicately around the problem of insufficient revenue at the end of the summer. First, she refused to stand by former insistence that tax rises in last year’s budget would be the last. “The world has changed,” she said.Then, earlier this month, she took a bigger stride into the icy waves. There was a speech promising to “do what is necessary” to fund public services and keep borrowing costs down. Downing Street did not discourage speculation that this meant reneging on Labour’s 2024 manifesto promise not to raise income tax. Too deep! Within 10 days the Treasury had retracted the hint. The manifesto commitment still stood after all. As any cold-water sw...

Politics

4 d. ago US stocks steady after top Fed official signals openness to rate cut

John Williams says there is ‘room for a further adjustment’ in borrowing costs

Politics

4 d. ago US stocks rise after top Fed official signals openness to rate cut

John Williams says there is ‘room for a further adjustment’ in borrowing costs

Politics

5 d. ago Markets brace for US jobs report after Nvidia results reassure investors – business live

Investors cheer forecast-beating results from chipmaker, as attention turns to delayed US employment reportThe Chinese ministry of commerce has said the dispute over the supply of chips from Nexperia, the Dutch-based Chinese-owed company, is still not fully resolved.“There is still a gap to completely solve the problem,” the Chinese ministry of commerce (MOFCOM) said on Thursday.“Minister Karremans justified his actions by accusing Nexperia’s CEO of various acts of alleged mismanagement. Wingtech strongly rejects these accusations and points out that, to date, no proof has been provided,”The minimum is no additional cost for business. Every time costs go up, you’re making the case against investing in the UK.In the UK cost of energy is too high versus almost anywhere in the world. Continue reading...

Economics

9 d. ago Without genuine reform to improve pitiful public sector productivity in next week's Budget, any hope of a return to economic prosperity will be crushed: ANDY HALDANE

It is scary season, and nowhere more so than at His Majesty's Treasury where - following a week of pre-Budget turmoil - they are fighting all manner of financial demons.

Economics

9 d. ago Angela Rayner’s reappearance is a further damning of Starmer’s leadership

Editorial: With Labour in turmoil and the Budget still more than a week away, the resurgence of the prime minister’s former deputy adds further complication that Keir Starmer could do without

Politics

1 week ago UK borrowing costs jump as investors lose faith in Rachel Reeves’ Budget

Gilts sell off after government ditches plan to increase income tax rates

Economics

1 week ago UK borrowing costs jump as investors lose faith in Reeves’ Budget

Gilts sell off after government ditches plan to increase income tax rates

Economics

1 week ago Treasury won’t cut threshold for higher rate income tax, say sources – UK politics live

Fallout continues over budget income tax U-turn, with Treasury saying expected fiscal gap has dropped to £20bnThis is from Helen Miller, director of the Institute for Fiscal Studies thinktank, on the market reaction to the chancellor’s reported budget U-turn.Investors will have 2 broad concerns about news that Chancellor won’t increase income tax rates1. Does it signal less willingness to do politically difficult thingsBritain’s long-term borrowing costs were sent soaring as reports suggested the latest U-turn would leave Rachel Reeves scrambling to fill a gaping black hole in the nation’s finances just two weeks before the 26 November budget.Yields on 30-year UK government bonds, also known as gilts, jumped as much as 14 basis points in early trading, and the yield on 10-year gilts also shot up 12 basis points – rising the most since July. Continue reading...

Politics

1 week ago Streeting says striking doctors ‘extremely irresponsible’ in angry phone

Health secretary unhappy as resident doctors in England have started a five-day strike todayThis is from Helen Miller, director of the Institute for Fiscal Studies thinktank, on the market reaction to the chancellor’s reported budget U-turn.Investors will have 2 broad concerns about news that Chancellor won’t increase income tax rates1. Does it signal less willingness to do politically difficult thingsBritain’s long-term borrowing costs were sent soaring as reports suggested the latest U-turn would leave Rachel Reeves scrambling to fill a gaping black hole in the nation’s finances just two weeks before the 26 November budget.Yields on 30-year UK government bonds, also known as gilts, jumped as much as 14 basis points in early trading, and the yield on 10-year gilts also shot up 12 basis points – rising the most since July. Continue reading...

Events

1 week ago Rachel Reeves ditches plans to hike income tax as UK borrowing costs jump

Income tax levels in Scotland are set by Holyrood but spending decisions set by Reeves have a major impact on how much funding is available to the SNP Government.

Economics

1 week ago UK borrowing costs up after markets spooked by Reeves’s income tax U

Pound down 0.5% against dollar in early trading after chancellor drops plans for upcoming budgetUK politics live – latest updatesBritain’s borrowing costs have jumped while the pound has dropped after the chancellor’s extraordinary last-minute decision to ditch tax-raising plans in the upcoming budget.Interest rates on government bonds rose by more than 10 basis points in early trading, putting them on track for their worst day since 2 July, when investors responded to a tearful appearance by Rachel Reeves in the House of Commons chamber. The pound, meanwhile, dropped 0.5% against the dollar. Continue reading...

Economics

1 week ago FTSE 100 LIVE: London flat and Europe jumps as UK government borrowing costs climb amid Starmer coup

FTSE 100 LIVE: London flat and Europe jumps as UK government borrowing costs climb amid Starmer coup  Yahoo Finance UK

Politics

1 week ago FTSE 100 LIVE: London flat and Europe gains as UK government borrowing costs climb amid Starmer coup

FTSE 100 LIVE: London flat and Europe gains as UK government borrowing costs climb amid Starmer coup  Yahoo Finance UK

Politics

2 w. ago Borrowing costs spike higher as Labour turmoil rattles bond markets

The yield on UK gilts edged up as international investors demanded a higher rate of return for lending to the government.

Economics

2 w. ago Welsh Water just got its report card from regulator Ofwat and it's not good

Welsh Water said at the same time that its downgrade by credit rating agencies would add significant borrowing costs

Politics

2 w. ago Trump’s dollar delusion: how trade war risks ending the US’s ‘exorbitant privilege’

Trump’s team flirts with weakening the dollar, threatening US influence, low borrowing costs and global stabilityMagical thinking is indispensable to understanding Team Trump’s economic policymaking. The White House often seems to believe two opposing policies can work together while one policy can do two or three contradictory things.A heavy dose of hocus pocus will be needed to make the administration’s dollar policy work in the interest of the United States, for it appears that they want to end the US dollar’s supremacy in global finance. Continue reading...

Events

2 w. ago Bank of England leaves interest rates on hold at 4% and says inflation "has peaked"

The next cut in the cost of borrowing is now expected in December just before Christmas

Economics

3 w. ago Economists urge Reeves to make ‘difficult’ choices to boost market confidence

Experts said the Chancellor should prioritise bringing down Government borrowing costs.

Economics