Pressure rises on Reeves as government borrowing costs hit 27-year high

Rachel Reeves may have to consider tax rises, or spending cuts, to ensure she meets her fiscal rule on debt. Photograph: Toby Melville/Reuters

Britain’s long-term borrowing costs have hit their highest level in 27 years, intensifying the pressure on the chancellor, Rachel Reeves, before the autumn budget.

The yield, or interest rate, on 30-year UK government debt hit 5.723% on Tuesday. That is its highest level since 1998, indicating that it will cost the UK more to borrow from the markets, above the previous 27-year high of 5.649% set in April.