Gilt markets are functioning in an ‘orderly way’, the Chief Secretary to the Treasury Darren Jones has said
Answering an urgent question in the House of Commons this morning as worries continue over the rising costs of borrowing in the UK,John, in the absence of the Chancellor Rachel Reeves said that the surge in bond yields had been “largely driven by data and geopolitical events”.
The yield on the benchmark 10-year UK gilt has climbed to 4.83pc, having earlier hit its highest level since 2008 while the pound is continuing to fall on the currency markets
Shadow Chancellor Mel Stride said it was a “bitter regret” that Rachel Reeves was “nowhere to be seen” and warned that the Government was on course “to breach its fiscal rules”.
Jones replied that debt levels were rising because of an “absolute failure to get growth into the economy” by previous Conservative governments adding
“They could not make the numbers add up. They’ve stacked up the country’s credit card. They’ve left it to this party to deal with, and we are going to deal with it.
“That is why these fiscal rules are non-negotiable.”
Meanwhile Reform MP Richard Tice told the Commons that the UK is “heading towards, be under no illusion, a financial crisis,” and said Rachel Reeves must “cut daft spending, cut wasteful regulations in order that we can create some growth”.
Shadow business minister Dame Harriett Baldwin called for Rachel Reeves to reconsider her trip to China.
She said: “She should certainly have been in the Commons to answer urgent questions from parliamentarians today. The Labour front bench was virtually empty.
“It’s clear that the actions that she took in the Budget have really damaged business confidence and they’ve really damaged the growth of the UK economy. That’s what the bond markets are reacting to, because they can see that her plans are unravelling.
