Despite the promises, Labour may have to acknowledge more tax rises are needed | Heather Stewart

Rachel Reeves is poised to take drastic measures to tighten public spending if bond market chaos persists, exacerbating the UK’s precarious fiscal outlook.

Reeves's strict non-negotiable fiscal rules come under pressure due to soaring gilt yields, which have reached their highest level since 1998, potentially jeopardizing the government’s financial stability.

The growing burden of debt interest payments is projected to surpass £122 billion annually by 2029-30, indicating a dire fiscal environment that requires urgent reevaluation of budget strategies.

Former Bank of England governor Mark Carney's warning about the UK's reliance on external investors highlights the risks of market volatility on the country’s funding and fiscal health.

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