The rising cost of borrowing means "there is a significant chance that the OBR will judge that the Chancellor Rachel Reeves is on course to miss her main fiscal rule", according to Ruth Gregory from Capital Economics. The yield on the 30-year gilt reached 5.35% on Wednesday, surpassing a previous high in August 1998.

Borrowing costs for the UK Government have reached their highest levels since the Great Recession earlier today in another blow to Chancellor Rachel Reeves's plans for the economy. The 10-year gilt yield surged by as much as 0.