Government borrowing costs keep rising as pound sinks to lowest level in over a year

The pound has tumbled to its lowest level against the US dollar for over a year as government borrowing costs surged further, heaping yet more pressure on Labour over its fiscal plans.

Sterling weakened again on Thursday morning amid a deepening rout in UK government bonds – also known as gilts – with the pound falling nearly 1 per cent to just under $1.23 US dollars – its lowest level since November 2023.