We don’t need to worry about rise in borrowing costs, minister insists
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A Cabinet minister has insisted there is no need to be worried about rising Government borrowing costs after yields on UK bonds surged to their highest level since the 2008 financial crisis. Speaking to broadcasters on Friday morning, Culture Secretary Lisa Nandy sought to reassure Britons about turbulence in the markets and said the Labour administration’s tax and spend rules are “non-negotiable”.
Chancellor Rachel Reeves is said to be prepared to impose more severe spending cuts on departments if necessary to balance the books, having already ruled out increasing either borrowing or taxes. Asked whether people should be concerned about the movement, Ms Nandy told Sky News: “I don’t think we should be worried.
“It’s obviously something we take very seriously, but these are global trends that have affected many countries, most notably the United States, as well as the UK. “We are still on track to be the fastest growing economy, according to the OECD in Europe.”.
She added: “We’re not going to borrow for day-to-day spending.”. The Culture Secretary defended Ms Reeves’ trip to China this week as “absolutely” the right decision amid opposition calls for the Chancellor to cancel the planned visit amid market turmoil.
China is the second-largest economy... it's absolutely essential that we have a relationship with them. “China is the second-largest economy, and what China does has the biggest impact on people from Stockton to Sunderland, right across the UK, and it’s absolutely essential that we have a relationship with them,” Ms Nandy said.
