Sir John Gieve, former Deputy Governor at the Bank of England, said the Chancellor may have to hike taxes or impose some ‘very severe reductions and squeezes’ on public services

The pound has fallen to its lowest level in over a year, while UK borrowing costs hit their highest for 16 years. Economists have warned that the rising costs could lead to further tax increases or spending cuts as the government tries to meet its self-imposed rule not to borrow to fund day-to-day spending.

The Pound has tumbled to its lowest level against the US dollar for over a year as government borrowing costs surged sparking warnings that mortgage rates will also rise. Sterling weakened again on Thursday morning amid a deepening rout in UK government bonds,

Economists have warned the rise could ultimately mean further tax rises or cuts to spending plans.

Homeowners have been issued an urgent warning as fixed-rate mortgages are set to rise after Government borrowing costs soared to their highest level in more than 27 years. The rise in borrowing costs has thrown expected mortgage rate reductions into question,

Government borrowing costs have been steadily rising in recent months, and have now hit their highest levels for several years. Why is this happening and how does it affect you? What's happening in the bond markets?

The pound has fallen to its lowest level in over a year, as UK borrowing costs surge to their highest in 16 years, fueling concerns over public finances and the economy.

The plummeting pound comes as the cost of borrowing and the government's interest in its debt rose to its highest level since the 2008 financial crisis when the global economy cam