UK’s borrowing costs rise on news that Reeves is changing fiscal rules

Rachel Reeves is to announce that the UK’s debt will be measured on a new basis that will free £50bn for capital spending. Photograph: Tayfun Salcı/Zuma Press Wire/Rex Shutterstock

The UK government’s borrowing costs have risen on global financial markets amid expectations that Rachel Reeves will change Britain’s debt rules to unlock up to £50bn of additional headroom for investment in infrastructure.

Ahead of next week’s budget, the Guardian revealed on Wednesday that the chancellor was preparing to confirm at the International Monetary Fund’s annual meetings in Washington that she would change the way the debt rule is calculated.