Rachel Reeves will deliver her spring statement on Wednesday against a backdrop of weak economic growth, rising global uncertainty and higher government borrowing costs.
After a turbulent period since her October budget, she is expected to argue the world has changed. Few places illustrate that more clearly than the financial markets, where conditions have turned against the chancellor.
The cost of government borrowing – as represented by bond yields – has risen sharply since the autumn; partly driven by domestic factors, but also global worries over Donald Trump hitting growth and stoking inflation.
