Why Starmer hasn’t been sunk by the bond market like Truss

Alex Kerr, at Capital Economics, estimates that the rise in long-term borrowing costs since the Budget has added another £5.8bn to Rachel Reeves’s annual debt interest spending.

If sustained, the recent increases in gilt yields would reduce Reeves’ headroom from £9.9bn as of the Spring Statement to £5.3bn, according to Alex Kerr, an economist at Capital Economics. Increased...

Alex Kerr, UK economist at Capital Economics, said: “July’s undershoot is not as good as it looks and even if this undershoot persists, the chancellor will probably need to raise taxes by £17 billion...