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UK borrowing costs up after markets spooked by Reeves’s income tax U-turn

Pound down 0.5% against dollar in early trading after chancellor drops plans for upcoming budgetUK politics live – latest updatesBritain’s borrowing costs have jumped while the pound has dropped after the chancellor’s extraordinary last-minute decision to ditch tax-raising plans in the upcoming budget.Interest rates on government bonds rose by more than 10 basis points in early trading, putting them on track for their worst day since 2 July, when investors responded to a tearful appearance by Rachel Reeves in the House of Commons chamber. The pound, meanwhile, dropped 0.5% against the dollar. Continue reading...

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