US EditionUK government borrowing costs spike amid tensions in ruling Labour party
- On Wednesday, UK 10-year gilts rose 0.17 points to 4.63% and 30-year gilts increased 0.22 points to 5.45%, the sharpest since April's tariff shock.
- Following a rebellion by Labour MPs, Reeves' welfare bill lost nearly £5 billion in savings, increasing future tax rise prospects and fiscal liabilities.
- The 10-year gilt yield increased by 16 basis points to 4.61%, while the pound fell 0.8% to $1.3643 amid market doubts over Reeves' future.
- Higher gilt yields threaten to reduce the £9.9 billion buffer by £3 billion, increasing debt service costs and adding pressure on public finances.
- Beyond immediate market turmoil, Reeves faces a tough choice between breaking fiscal rules or raising taxes before the October Budget, as pressures mount on public finances.
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During the question time the Prime Minister does not explicitly confirm his support for the Minister of the Treasury. The fiasco of the Welfare reform
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UK Markets Slide as Finance Chief’s Future in Doubt
UK financial markets took a sharp hit on Tuesday, July 1st, as concerns mounted over Britain’s fiscal trajectory and the potential departure of Chancellor of the Exchequer Rachel Reeves. The pound dropped more than 1%, sinking below $1.36, while the FTSE 250 Index fell 1.5% and government borrowing costs surged. The selloff intensified after Prime Minister Keir Starmer declined to confirm whether Reeves would remain in her role through to the ne…
Coverage Details
Total News Sources29
Leaning Left5Leaning Right5Center7Last UpdatedBias Distribution41% Center
Bias Distribution
- 41% of the sources are Center
41% Center
L 29%
C 41%
R 29%
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