When are we going to wake up to Labour's debt crisis?

 Wind the clock back barely 9 months ago and Rachel Reeves on the 4th November 2025 was making a speech about the cost of borrowing and how she was going to adjust the fiscal rules to bring it back under control.

She correctly the stated the problem:  "We are spending £1 in every £10 of tax payers money on servicing our debt".

Back then the gilt borrowing rates were hovering around 4.2%.  In barely 9 months Labour has been splashing the cash and the bond markets are growing more concerned about the UK's ability to service, let alone repay, the colossal £3 Trillion debt pile. Because of this gilt yields have crept up to 5.05%.

Now increasing from 4.2% to 5.05% doesn't sound so bad does it?

Well to update her statement

"We are spending £1 in every £8 of tax payers money on servicing our debt"

"We are spending £1.20 in every £10 of tax payers money on servicing our debt"

It's 20% worse that 9 months ago. Come back Liz Truss - all is forgiven in your fabulous budget.....

Forget the "The Tax man cometh". I think it's a case of "The IMF cometh".

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