US EditionUK government borrowing costs spike amid tensions in ruling Labour party
- On Wednesday, UK government borrowing costs spiked as Chancellor Rachel Reeves appeared tearful at Prime Minister's Questions amid a government welfare reform U-turn.
- The spike followed the government reversing cuts to disability benefits after rebel lawmakers opposed the plan, which undermined nearly £5 billion in expected savings from the welfare reform.
- This reversal put pressure on Reeves' strict fiscal rules requiring spending to be covered by tax revenues, causing sterling to fall 1% against the dollar and 10-year gilt yields to rise sharply.
- Economist Robert Wood said the welfare concessions 'blown a hole in Ms. Reeves' fiscal rules' and warned borrowing more instead of raising taxes will worry markets about fiscal credibility.
- The market reaction and speculation about Reeves' future suggest rising concerns over the government's spending plans and possible fiscal challenges ahead.
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32 Articles
32 Articles
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Left
6
Center
7
Right
5
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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Coverage Details
Total News Sources32
Leaning Left6Leaning Right5Center7Last UpdatedBias Distribution39% Center
Bias Distribution
- 39% of the sources are Center
39% Center
L 33%
C 39%
R 28%
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