UK borrowing costs spiralled to a 27-year high today amid warnings that Labour is pushing Britain towards 'economic oblivion'.
Yields on 30-year UK bonds, known as gilts, leapt to just below 5.7 per cent, the highest level since 1998 in the wake of a reshuffle seen as sidelining Rachel Reeves.
Higher yields mean investors are charging more money to lend to the UK – adding to the Chancellor's Budget headache.
Markets are increasingly worried about Ms Reeves' ability to balance the books with some estimating the black hole could be as big as £50billion. Investors are betting that more bonds will need to be issued to finance further borrowing.
They are also alarmed about inflation running at an 18-month high and expected to climb towards 4 per cent.
