Interest Rate Red Flags Ahead of Budget Day The UK's long term borrowing costs have reached a 28 year high, sparking concerns about inflation and the government's fiscal discipline in the run up to next month's Budget.
The yield on a 30 year gilt has risen to 5. 89%, its highest level since 1998.
Higher borrowing costs will significantly reduce the government's headroom against its self imposed fiscal rules, limiting their ability to implement consumer friendly measures to ease the cost of living, a key priority in the Budget.