Government borrowing costs rise in wake of income tax U-turn speculation

The Chancellor, right, had been expected to hike income tax in the face of a yawning gap in her spending plans (Temilade Adelaja/PA) - (PA Wire)

Government borrowing costs have risen in the wake of an apparent income tax U-turn by the Chancellor.

Speculation that Rachel Reeves has scrapped her plans to raise income tax at the Budget has sparked a sell-off in UK Government bonds, also known as gilts: the means by which the Government borrows money from private investors.