Cabinet Minister Tells People not to Worry about Rise in Borrowing Costs

January 10, 2025

By Evans Momodu
1 minute read

Culture Secretary Lisa Nandy has sought to calm concerns over surging government borrowing costs, as UK bond yields reached their highest levels since 2008.

In an interview, Nandy reassured the public, stating, "I don't think we should be worried. It's obviously something we take very seriously, but these are global trends affecting many countries, including the United States."

She emphasized that the UK remains "on track to be the fastest-growing economy in Europe, according to the OECD," and reiterated that the government would not borrow for day-to-day spending.

Chancellor Rachel Reeves has reportedly prepared for harsher spending cuts if necessary to maintain fiscal balance, having already ruled out increases in borrowing or taxes.

Yields on 10-year gilts peaked at 4.89% yesterday, their highest since the financial crisis, while yields on 30-year gilts climbed to 5.39%, the highest level since 1998. As markets opened this morning, 10-year gilt yields stood at 4.85%, with 30-year yields increasing to 5.41%.

For further insight, our economics correspondent Paul Kelso offers an explainer on whether rising borrowing costs should be a cause for concern.
Source: Sky news
Image: The Independent