UK Finance Ministry Reaffirms Fiscal Commitment

LONDON (Reuters) – Britain’s finance ministry on Wednesday stated that its commitment to the government’s fiscal rules is non-negotiable. This announcement comes amidst market turmoil affecting sterling and British bonds.

Rising borrowing costs present additional challenges for finance minister Rachel Reeves, who plans to sell hundreds of billions of pounds’ worth of bonds this year. This funding is intended for public services and growth-enhancing investments while adhering to rules that limit debt and spending levels.

A spokesperson emphasized, “No one should be under any doubt that meeting the fiscal rules is non-negotiable, and the government will have an iron grip on the public finances.”

They added, “UK debt is the second lowest in the G7, and only the OBR’s (Office for Budget Responsibility) forecast can accurately predict the government’s financial headroom – anything else is pure speculation.”

On Wednesday, British government bond prices decreased sharply for the second consecutive day. This led to a rise in 10-year yields, reaching their highest point since August 2008, while 30-year yields achieved a new 26-year high.