UK long-term borrowing costs rise ahead of Chancellor Reeves' first Budget

UK long-term borrowing costs reached a post-election high as investors prepared for Chancellor Rachel Reeves' first Budget. She plans to raise over £20 billion annually for growth-focused projects, marking one of the largest tax-raising efforts in history. Reeves will relax fiscal rules to allow significant new borrowing, while also addressing a £40 billion funding gap through tax increases. Key measures include higher national insurance contributions and capital gains tax adjustments, despite previous promises of limited tax rises. The Office for Budget Responsibility will provide growth forecasts, which may differ from other predictions. Reeves has faced criticism for delays in presenting the Budget, contributing to declining consumer confidence and her approval ratings.