Britain's Borrowing Costs Soar Amid Economic Debate
Conservative leader Kemi Badenoch criticises Labour's fiscal plans as UK gilt yields hit a 26-year high.
Sarah Connor
Britain's 30-year gilt yields surpassed 6% this month, reaching their highest level since 1998.
Badenoch declared, "Britain is at risk." She further asserted, "If, at this Budget, he does not find the money to get to 3%, John Healey has an awful lot of explaining to do."
She also claimed Labour takes out loans to pay the interest on existing loans. "We have to stop borrowing so much. But instead of doing that, Labour are taking out loans to pay the interest on our loans," Badenoch said.
If Labour’s plan is to kick tough decisions into the long grass, come out with tiny bits of micro policy, put up a few taxes, spend a bit more on welfare, and hope nobody notices before the next election, they are kidding themselves.
Badenoch criticised Labour's policy approach. "If Labour’s plan is to kick tough decisions into the long grass, come out with tiny bits of micro policy, put up a few taxes, spend a bit more on welfare, and hope nobody notices before the next election, they are kidding themselves."
She highlighted concerns over the timing of spending reviews. "But we are hearing that the decision has been kicked into the spending review, and the spending review itself has been kicked into next autumn."
Bridget Phillipson countered Badenoch's economic criticisms. Phillipson stated, "Kemi Badenoch is totally tone deaf on the economy."
debt rocketed, interest rates went up, while family finances and businesses were hammered.
Phillipson argued that under the previous Conservative government, "debt rocketed, interest rates went up, while family finances and businesses were hammered." She maintained Labour made "fair decisions to reverse the Conservatives’ decline."
The economy now grows, interest rates have fallen, and private investment has returned, Phillipson claimed. She added, "We’re giving people breathing space on the cost of living and delivering everyday fixes to make life that little bit easier."
She criticised Conservative proposals. "Yet Badenoch’s answer is reverse Robin Hood politics – giving tax breaks to the wealthiest while offering nothing to ordinary people. It’s the same old Tories."
The Conservatives announced they would scrap inheritance tax on family homes, allowing couples to leave £1 million tax-free. They also plan to implement over £70 billion in savings, including significant cuts to welfare spending.
John Healey, who resigned as Sir Keir Starmer’s defence secretary over a defence funding dispute, will outline his tax and spending plans on 28 October. Labour also announced a crackdown on people playing music on public transport.