“Self-defeating” tax rises and persistent inflation are to blame for the recent surge in Britain’s borrowing costs, Rachel Reeves has been warned.

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.

The interest rate on UK 30-year bonds hits the highest since 1998 as concerns over the economic outlook continue.