Markets ‘orderly’ despite soaring borrowing costs, says Treasury minister

The Treasury has said UK financial markets are functioning “in an orderly way” despite the pound plunging to its lowest level for over a year after a rout in the bond markets. Government borrowing costs increased further on Thursday morning, piling more pressure on the Labour Government’s fiscal plans. Treasury Minister Darren Jones said the Government’s fiscal rules are “non-negotiable” but warned that “public services will have to live within their means”. It comes after economists warned that Chancellor Rachel Reeves could be forced into further tax hikes or cuts to spending plans to meet UK fiscal rules due to a potential rise in the Government’s debt interest bill.