Treasury steps in to defend Reeves' borrowing amid gilt market selloff

'Pure speculation'

The Treasury has stepped in to temper concerns about financial markets a day after UK gilts shot up, prompting worries over how the government will manage its debt.

The Treasury rejected claims that higher debt costs had limited Chancellor Rachel Reeves's headroom for borrowing, calling them "pure speculation". "UK debt is the second lowest in the G7 and only the OBR's forecast can accurately predict how much headroom the government has," a Treasury spokesperson said, adding that "no one should be under any doubt that meeting the fiscal rules is non-negotiable and the government will have an iron grip on the public finances". The Treasury intervention came after yields on UK 30-Year gilts rose to the highest level since 1998 on Wednesday (8 Janua...