Yesterday the thirty year borrowing rate surged to 5.6%. Its one day spike worst level under Truss was just 4.8%, so Reeves has pushed it up by17% on a rate she said had crashed the economy.
The ten year rate hit 4.6% compared to the 4.38% highest one day spike under Truss.
The latest borrowing figures showed another surge in last month’s borrowing. Debt interest charges are over £100 bn a year and growing. The debt is high and growing too fast.
The Chancellor needs to take urgent action to control spending. Forget giving billions to Mauritius over the years ahead. Veto all new charges to be imposed by the EU for re set. Tell the DWP to be firmer in evaluating new claims for benefits and to issue fewer sicknotes for life. Reinstate the two child cap. Raise the future pension age for state pension. Cut the absurdly high Bank of England, railway and steel losses.
The Chancellor now has a spendthrift reputation in the markets. The UK is being charged higher rates than most Advanced countries as a risk premium or extra levy because the government is not trusted to run the finances prudently. It is no good the Chancellor constantly claiming prudence and doing the opposite. The markets have formed a bad view and are making the UK pay a lot extra as a result.
The OBR does not provide discipline over the deficit as its control relates to the distant fifth year of its forecast. It is a rolling target so Year 5 never comes!
March 21, 2026
Exactly.
The doomloop spins ever more quickly as this appalling government (and the dire list of potential post May Starmer replacements Rayner favourite then Streeting and Miliband) keep further damaging the economy and confidence every single day.
They have no chance of power after the next election and so will surely take a scorched earth policy for the next three years they have already started it seems.
March 21, 2026
Again, I cannot see Reeves or the government changing course.
They will continue to be spendthrift.
March 21, 2026
Things are certainly not good but debt rocketeted under Sunak as Chancellor and PM – only need to look at a 10 year GILT chart. Labour are indeed hapless and have confounded any problems but they were left a difficult fiscal premise..