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UK chancellor links confidence push to high borrowing costs
The chancellor told lawmakers that global bond yield rises are tightening the Budget, while the government plans to keep the state pension linked to inflation, wages, or 2.5% whichever is highest.
BBC Business reports that the UK chancellor is trying to bolster consumer and business confidence ahead of upcoming fiscal decisions, framing the push as support for “economic animal spirits” amid ongoing uncertainty.
In remarks delivered near Jaguar Land Rover’s Coventry operations, the chancellor also pointed to confirmed job losses at the carmaker as an example of broader global turbulence, arguing the UK needs greater resilience.
The outlet says the chancellor acknowledged borrowing costs are too high, describing the global rise in bond yields as weighing on the government’s Budget calculations.
He also declined to comment on whether the approach would involve significant tax rises ahead of a Budget scheduled for October 28, while reiterating that the state pension will rise each year in line with inflation, wage growth, or 2.5%, whichever is highest, according to BBC Business.