Reeves may need to cut spending after jump in borrowing costs, say economists

The Chancellor of the Exchequer Rachel Reeves (Peter Byrne/PA) - (PA Wire)

The Chancellor could be forced into further tax hikes or cuts to spending plans to meet UK fiscal rules after a jump in government borrowing costs, economists have warned.

State borrowing costs struck their highest level for almost 17 years on Wednesday amid a continued sell-off in the bond market and investor concerns over the threat of stagflation.