Elon Musk may have moved political focus in the UK to the grooming gangs scandal, but there is another issue causing alarm in the upper echelons of government this week: the economy. With every day that passes, Britain’s financial situation appears to be deteriorating. On Tuesday, a £2 billion auction of 30-year UK government debt sold at an interest rate of 5.198 per cent, which outpaced increases for other governments’ bonds. Ten-year borrowing costs have since surged to their highest level since the 2008 financial crisis, and as of today the pound continues to fall. On Wednesday, the Treasury put out a quote which has been seen as an attempt to calm the markets:
No one should be under any doubt that meeting the fiscal rules is non-negotiable and the government will have an iron grip on the public finances.
The Treasury spokesman added that Reeves would ‘leave no stone unturned in her determination to deliver economic growth and fight for working people’.
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