UK Borrowing Costs Surge as Rachel Reeves Reportedly Halts Income Tax Hike Plans

UK Borrowing Costs Spike on Income Tax Report

British government bond yields experienced a significant surge on Friday, indicating a sharp rise in borrowing costs for the UK. This immediate market reaction followed widespread reports suggesting that Finance Minister Rachel Reeves, the U.K. chancellor of the exchequer, is no longer planning to implement an increase in income tax rates.

This potential reversal of policy is anticipated ahead of the eagerly awaited Autumn Budget, which is scheduled to be presented later this month. The news has prompted a re-evaluation among investors regarding the nation's fiscal direction and economic outlook, leading to the notable spike in bond yields.