Rachel Reeves: Chancellor reacts to UK inflation rise
More Videos
0 seconds of 4 minutes, 0 Volume 90%
Press shift question mark to access a list of keyboard shortcuts Keyboard Shortcuts EnabledDisabled
Shortcuts Open/Close / or ?
Play/Pause SPACE
Increase Volume ↑
Decrease Volume ↓
Seek Forward →
Seek Backward ←
Captions On/Off c
Fullscreen/Exit Fullscreen f
Mute/Unmute m
Decrease Caption Size -
Increase Caption Size + or =
Seek % 0-9
Next Up
Farage hits out at Badenoch over Reform membership claims
01:51
x facebook Email Link https://cdn.jwplayer.com/previews/qTJcSa8Q Copied
Live
00:00
04:00
04:00
More Videos
Close
Rachel Reeves is facing humiliation as borrowing costs soared to higher than they were after Liz Truss's disastrous mini-Budget.
Economic experts warned the Chancellor was on the verge of breaking her own borrowing rules thanks to her Budget flop.
by Taboola by Taboola
Sponsored Link Sponsored Link
Promoted Links Promoted Links
Thousands of men adore this cozy cashmere sweatshirt.Buybuymen
Undo
DON'T MISS
Powered by
Rachel Reeves is getting her way for now - but here's one reason she should tremble
92 Comments
Angela Rayner humiliated as builders warn her house building plan will fail
55 Comments
Putin facing mutiny from Russian businesses as Ruble tanks: 'Criticism is growing'
91 Comments
Rachel Reeves' crocodile smile fools no-one - she's set on bleak future for Britain
62 Comments
Banking expert on how you can get 'better interest rate' with account switch
Comments
Rachel Reeves predicted to hit UK with more crushing tax rises - including income tax
47 Comments
Inflation jump is just the start - Rachel Reeves is about to make things even worse
122 Comments
End the madness! Football boss turned Reform MP's bid to stop UK cash splurge
36 Comments
Rachel Reeves talked a big game, but Labour Party's actions tell a different story
73 Comments
Remoaners' claim Brexit is costing Britain ￡100bn a year torn apart by top economist
1867 Comments
Nightmare for Rachel Reeves as UK's richest start moving all their money out of Britain
1624 Comments
Best savings accounts in January offering up to bumper 8%
Comments
Struggling pubs and restaurants face new hammer blow from Rachel Reeves
27 Comments
Reeves and Rayner threaten year of chaos as inflation, recession and tax hikes loom
290 Comments
Dating Site For Older Men! Single Ladies Message First!DateMyAge
Undo
by Taboola by Taboola
Sponsored Links Sponsored Links
Promoted Links Promoted Links
Urgent warning as economic crisis looms because Reeves ‘cannot make the damn sums work'
868 Comments
Rachel Reeves on knife edge as new blunder wastes another ￡6billion of our money
913 Comments
Why Did The VA Keep This Secret From Us?Veteran Benefits 2024
Undo
by Taboola by Taboola
Sponsored Links Sponsored Links
Promoted Links Promoted Links
Donald Trump's White House return to spark mortgage misery in UK
6 Comments
Bank of England multiple interest rate cuts expected in huge boost for millions
8 Comments
Seniors Born 1941-1979 Receive 7 Benefits This Month If They AskSeniors Discounts
Undo
by Taboola by Taboola
Sponsored Links Sponsored Links
Promoted Links Promoted Links
Tax warning as Rachel Reeves poised for further raids after Labour's disastrous start
91 Comments
UK manufacturing shrinks at fastest rate as job cuts hit 10 month high
26 Comments
Top Vet Warns: "Never Do This With An Aging Cat"Dr. Marty
Undo
by Taboola by Taboola
Sponsored Links Sponsored Links
Promoted Links Promoted Links
Rachel Reeves is getting her way for now - but here's one reason she should tremble
92 Comments
Angela Rayner humiliated as builders warn her house building plan will fail
55 Comments
If You Have Toenail Fungus, Try This Tonight (Watch)Derma Reports
Undo
by Taboola by Taboola
Sponsored Links Sponsored Links
Promoted Links Promoted Links
Putin facing mutiny from Russian businesses as Ruble tanks: 'Criticism is growing'
91 Comments
Rachel Reeves' crocodile smile fools no-one - she's set on bleak future for Britain
62 Comments
Aging Seniors: Do Not Take Apple Cider Vinegar Before You See ThisGetting Slim
Undo
by Taboola by Taboola
Sponsored Links Sponsored Links
Promoted Links Promoted Links
Banking expert on how you can get 'better interest rate' with account switch
Comments
Rachel Reeves predicted to hit UK with more crushing tax rises - including income tax
47 Comments
Affordable Camper Vans That Won't Break the Bank (Explore Here)Local Plan
Undo
by Taboola by Taboola
Sponsored Links Sponsored Links
Promoted Links Promoted Links
Inflation jump is just the start - Rachel Reeves is about to make things even worse
122 Comments
End the madness! Football boss turned Reform MP's bid to stop UK cash splurge
36 Comments
See The Value Of Anyone's' Home By Searching Address (Take a Look)Home Value Lookup
Undo
by Taboola by Taboola
Sponsored Links Sponsored Links
Promoted Links Promoted Links
Rachel Reeves talked a big game, but Labour Party's actions tell a different story
73 Comments
Remoaners' claim Brexit is costing Britain ￡100bn a year torn apart by top economist
1867 Comments
Brazilian Bikinis are Sweeping the US in 2025! (See More)Bikinis | Search Ads
Undo
by Taboola by Taboola
Sponsored Links Sponsored Links
Promoted Links Promoted Links
Nightmare for Rachel Reeves as UK's richest start moving all their money out of Britain
1624 Comments
Best savings accounts in January offering up to bumper 8%
Comments
Unbelievable: Calculator Shows The Value Of Your House Instantly (Take a Look)Find Top Results Learn More
Undo
by Taboola by Taboola
Sponsored Links Sponsored Links
Promoted Links Promoted Links
Struggling pubs and restaurants face new hammer blow from Rachel Reeves
27 Comments
Reeves and Rayner threaten year of chaos as inflation, recession and tax hikes loom
290 Comments
Urgent warning as economic crisis looms because Reeves ‘cannot make the damn sums work'
868 Comments
Rachel Reeves on knife edge as new blunder wastes another ￡6billion of our money
913 Comments
Donald Trump's White House return to spark mortgage misery in UK
6 Comments
Bank of England multiple interest rate cuts expected in huge boost for millions
8 Comments
Tax warning as Rachel Reeves poised for further raids after Labour's disastrous start
91 Comments
UK manufacturing shrinks at fastest rate as job cuts hit 10 month high
26 Comments
Rachel Reeves is getting her way for now - but here's one reason she should tremble
92 Comments
Angela Rayner humiliated as builders warn her house building plan will fail
55 Comments
Putin facing mutiny from Russian businesses as Ruble tanks: 'Criticism is growing'
91 Comments
Rachel Reeves' crocodile smile fools no-one - she's set on bleak future for Britain
62 Comments
Banking expert on how you can get 'better interest rate' with account switch
Comments
Rachel Reeves predicted to hit UK with more crushing tax rises - including income tax
47 Comments
Inflation jump is just the start - Rachel Reeves is about to make things even worse
122 Comments
When she entered No 11, Ms Reeves set a new self-imposed fiscal rule of not borrowing to fund day-to-day government spending.
However, her Budget left her with less than ￡10billion of fiscal headroom, which economists now say could be closer to just ￡1billion due to rising debt costs.
The 10-year gilt yield - the amount the Government pays to borrow money for a decade - has now surged to 4.6%.
Sponsored
MyHeritage？Search Any Name to Find Historical Records
Undo
by Taboola by Taboola
That is higher than the 4.3% under Ms Truss and her chancellor, Kwasi Kwarteng.
READ MORE: 'Rachel Reeves sunk UK economy. Labour's next blunder will do even more damage'
Rachel Reeves is facing economic humiliation (Image: Getty)
The rise indicates collapsing investor confidence in the UK’s growth prospects and could force the Chancellor to either increase taxes, cut spending, or break her borrowing rules less than a year into the job.
The rising cost of borrowing means the Government has to spend more money servicing the country’s enormous debt, rather than on public services or tax cuts.
On Tuesday, Ruth Gregory and Alex Kerr, from Capital Economics, warned Ms Reeves now faces a “nasty choice”.
They said: “There is a significant chance that the Office for Budget Responsibility will judge that the Chancellor, Rachel Reeves, is on course to miss her main fiscal rule when it revises its forecasts on March 26.
“To maintain fiscal credibility, this may mean that Reeves is forced to tighten fiscal policy further.
“In recent years, the fiscal headroom has never been this low. It would only take a further 0.06 percentage point increase in market interest rate expectations and 20-year gilt yields to wipe it out altogether.”
Don't miss...
Rachel Reeves' nightmare budget blamed for UK clothes price hike by retail boss [LATEST]
'Rachel Reeves sunk UK economy. Labour's next blunder will do even more damage' [LATEST]
Rachel Reeves exposed for ￡1.5bn 'lie' as major Labour policy falls apart [LATEST]
Borrowing costs are now higher than under Liz Truss (Image: Getty)
Trending
SUBSCRIBE Invalid email
We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. Read our Privacy Policy
A leading broker added that the surge in long-term borrowing costs now means investors are worried about the scale of future budget deficits.
Kathleen Brooks, from XTB, warned this could force Ms Reeves into a “rethink”, which could involve huge cuts to public spending or tax hikes which would kill off growth.
DON'T MISS
Powered by
Rachel Reeves is getting her way for now - but here's one reason she should tremble
92 Comments
Angela Rayner humiliated as builders warn her house building plan will fail
55 Comments
Putin facing mutiny from Russian businesses as Ruble tanks: 'Criticism is growing'
91 Comments
Rachel Reeves' crocodile smile fools no-one - she's set on bleak future for Britain
62 Comments
Banking expert on how you can get 'better interest rate' with account switch
Comments
Rachel Reeves predicted to hit UK with more crushing tax rises - including income tax
47 Comments
Inflation jump is just the start - Rachel Reeves is about to make things even worse
122 Comments
End the madness! Football boss turned Reform MP's bid to stop UK cash splurge
36 Comments
Rachel Reeves talked a big game, but Labour Party's actions tell a different story
73 Comments
Remoaners' claim Brexit is costing Britain ￡100bn a year torn apart by top economist
1867 Comments
Nightmare for Rachel Reeves as UK's richest start moving all their money out of Britain
1624 Comments
Best savings accounts in January offering up to bumper 8%
Comments
Struggling pubs and restaurants face new hammer blow from Rachel Reeves
27 Comments
Reeves and Rayner threaten year of chaos as inflation, recession and tax hikes loom
290 Comments
Eat 1 Teaspoon Every Day And See What Happens A Week Later [video]Health Benefits
Undo
by Taboola by Taboola
Sponsored Links Sponsored Links
Promoted Links Promoted Links
Urgent warning as economic crisis looms because Reeves ‘cannot make the damn sums work'
868 Comments
Rachel Reeves on knife edge as new blunder wastes another ￡6billion of our money
913 Comments
Nevada: Say Goodbye To High 2024 Car Insurance Rates If You Live In These Zip CodesUltimateInsurance
Undo
by Taboola by Taboola
Sponsored Links Sponsored Links
Promoted Links Promoted Links
Donald Trump's White House return to spark mortgage misery in UK
6 Comments
Bank of England multiple interest rate cuts expected in huge boost for millions
8 Comments
Scalp Psoriasis Is Silent But Deadly: 3 Things You Should KnowSigns of Scalp Psoriasis | Search Ads
Undo
by Taboola by Taboola
Sponsored Links Sponsored Links
Promoted Links Promoted Links
Tax warning as Rachel Reeves poised for further raids after Labour's disastrous start
91 Comments
UK manufacturing shrinks at fastest rate as job cuts hit 10 month high
26 Comments
The Secret Trick That’s Slashing Fuel Consumption NationwideShopOptrimo
Undo
by Taboola by Taboola
Sponsored Links Sponsored Links
Promoted Links Promoted Links
Rachel Reeves is getting her way for now - but here's one reason she should tremble
92 Comments
Angela Rayner humiliated as builders warn her house building plan will fail
55 Comments
5 Everyday Expenses Americans Waste the Most Money On (It’s Not Coffee)BetterBuck
Undo
by Taboola by Taboola
Sponsored Links Sponsored Links
Promoted Links Promoted Links
Putin facing mutiny from Russian businesses as Ruble tanks: 'Criticism is growing'
91 Comments
Rachel Reeves' crocodile smile fools no-one - she's set on bleak future for Britain
62 Comments
I Started Doing This Every Morning, and My Husband Finds Me Irresistible!ExpertsInGettingSlim
Undo
by Taboola by Taboola
Sponsored Links Sponsored Links
Promoted Links Promoted Links
Banking expert on how you can get 'better interest rate' with account switch
Comments
Rachel Reeves predicted to hit UK with more crushing tax rises - including income tax
47 Comments
I Started Doing This Each Morning And My Husband Can't Keep His Hands Off MeRoundhouse Provisions
Undo
by Taboola by Taboola
Sponsored Links Sponsored Links
Promoted Links Promoted Links
Inflation jump is just the start - Rachel Reeves is about to make things even worse
122 Comments
End the madness! Football boss turned Reform MP's bid to stop UK cash splurge
36 Comments
Best Winter Hat I've Ever OwnedJoyhnny PolarDefender
Undo
by Taboola by Taboola
Sponsored Links Sponsored Links
Promoted Links Promoted Links
Rachel Reeves talked a big game, but Labour Party's actions tell a different story
73 Comments
Remoaners' claim Brexit is costing Britain ￡100bn a year torn apart by top economist
1867 Comments
Vet Warns Las Vegas: "If Your Dog Licks Its Paws, Watch This Immediately"Ultimate Pet Nutrition
Undo
by Taboola by Taboola
Sponsored Links Sponsored Links
Promoted Links Promoted Links
Nightmare for Rachel Reeves as UK's richest start moving all their money out of Britain
1624 Comments
Best savings accounts in January offering up to bumper 8%
Comments
Game shows what the world without US military interventions would look likeHistory Strategy Game
Undo
by Taboola by Taboola
Sponsored Links Sponsored Links
Promoted Links Promoted Links
Struggling pubs and restaurants face new hammer blow from Rachel Reeves
27 Comments
Reeves and Rayner threaten year of chaos as inflation, recession and tax hikes loom
290 Comments
Urgent warning as economic crisis looms because Reeves ‘cannot make the damn sums work'
868 Comments
Rachel Reeves on knife edge as new blunder wastes another ￡6billion of our money
913 Comments
Donald Trump's White House return to spark mortgage misery in UK
6 Comments
Bank of England multiple interest rate cuts expected in huge boost for millions
8 Comments
Tax warning as Rachel Reeves poised for further raids after Labour's disastrous start
91 Comments
UK manufacturing shrinks at fastest rate as job cuts hit 10 month high
26 Comments
Rachel Reeves is getting her way for now - but here's one reason she should tremble
92 Comments
Angela Rayner humiliated as builders warn her house building plan will fail
55 Comments
Putin facing mutiny from Russian businesses as Ruble tanks: 'Criticism is growing'
91 Comments
Rachel Reeves' crocodile smile fools no-one - she's set on bleak future for Britain
62 Comments
Banking expert on how you can get 'better interest rate' with account switch
Comments
Rachel Reeves predicted to hit UK with more crushing tax rises - including income tax
47 Comments
Inflation jump is just the start - Rachel Reeves is about to make things even worse
122 Comments
2 Insane Cards Charging 0% Interest Until 2026
Undo
Stop Paying Interest With These 2 Cards—0% Until 2026
Undo
3 Cards ？Now Charging 0% Interest ？Until 2026
Undo
Lock in 0% Interest Until 2026
Undo
by Taboola by Taboola
Sponsored Links Sponsored Links
Promoted Links Promoted Links
Costco Shoppers Say This Wrinkle Cream Is “Absolutely Worth It”Vibriance
Undo
by Taboola by Taboola
Sponsored Links Sponsored Links
Promoted Links Promoted Links
Declining Vision & Poor Eyesight Is Not From Aging (Meet The Real Enemy)20/20 Vision Back
Undo
by Taboola by Taboola
Sponsored Links Sponsored Links
Promoted Links Promoted Links
This Travel Rewards Card is a Must-HaveForbes
Undo
by Taboola by Taboola
Sponsored Links Sponsored Links
Promoted Links Promoted Links
Shadow Business Secretary Andrew Griffith warned: “The fact that gilt rates are at their highest level for 25 years shows investors are voting with their feet and have no faith in Labour’s economic plan.
“The cost of this will be paid by businesses and households in higher interest rates and it comes when firms are already reeling from Labour's jobs tax, biz rates rise and higher costs from the union-inspired Employment Bill.
“The stubborn Chancellor needs to urgently change course.”